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Private Pension schemes which are not used for automatic enrolment are free to invest in funds with performance fees.<\/p>
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To protect savers who are automatically enrolled into a pension scheme and make no choice of investment fund, the Government introduced a charge cap on 6 April 2015. Performance fees have always been subject to the charge cap. However, the way that schemes used for automatic enrolment verify compliance with the charge cap limits the use of most performance fees.<\/p>
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