The DWP and FCA have issued a report on progress in reducing costs to below 1% in legacy workplace pensions. This has been an effective but slow process. These excess charges reduce the value of people’s final pension.
There is still 16% of AuM in contract-based schemes and 15%
in trust-based schemes at risk of costs and charges above 1%.
Why don’t they just impose a statutory charges cap effective from say 1st January 2018, require reimbursement of any excess charges and prosecute those who fail to adhere to the price cap?