Consultation outcome

Incorporating performance fees within the charge cap

This was published under the 2019 to 2022 Johnson Conservative government

Applies to England, Scotland and Wales

This consultation has concluded

Read the full outcome

Government response: Improving outcomes for members of defined contribution pension schemes

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Detail of outcome

This is the government’s response to 2 important consultations on occupational Defined Contribution (DC) pension schemes’ investments and overall governance:

  • this March 2021 consultation ‘Incorporating performance fees within the charge cap’ on draft regulations on performance fee smoothing and a call for evidence on the issue of look-through

  • September 2020 consultation on draft regulations and statutory guidance to deliver better value for money for members of DC schemes

Over the past 12 months, the government has set out a series of measures to prepare the DC occupational pensions market for the challenges and opportunities ahead - this response finalises important next steps.


Original consultation

Summary

A consultation on proposed measures to allow occupational defined contribution pension schemes to smooth performance fees within the charge cap and a call for evidence on look-through.

This consultation ran from
to

Consultation description

This consultation is the next step to the consultation ‘Improving outcomes for members of defined contribution schemes’. It contains the government response to the performance fee section (Chapter 3) of the September 2020 consultation and consults on consequential draft regulations. The government aims to publish a response to this consultation alongside a response to the remainder of the September 2020 consultation, including final draft regulations and final statutory guidance, in June 2021.

This consultation also seeks views at this stage on the current position on look-through in relation to charge cap compliance, as a potential barrier to investment in alternative asset classes, particularly venture capital and growth equity. The government’s June 2021 response will include a summary of responses we receive and next steps on this issue.

The consultation is aimed at:

  • pension scheme trustees and managers
  • pension scheme members and beneficiaries
  • pension scheme service providers, other industry bodies and professionals
  • civil society organisations
  • any other interested stakeholders

Please send your consultation responses via email to:

Sam Haylen, Vicky Bird, Tessa Lubrun and Andrew Blair
[email protected]

Documents

Incorporating performance fees within the charge cap

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email [email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use.

Updates to this page

Published 19 March 2021
Last updated 14 March 2023 + show all updates
  1. Removed an out of date reference to a summary box from the final outcome document (paragraph 146).

  2. Published the government’s response to this consultation. The response is also for the September 2020 consultation on draft regulations and statutory guidance to deliver better value for money for members of Defined Contribution (DC) schemes.

  3. First published.

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