The UK's National Association of Pension Funds (NAPF) has attacked key Myners' recommendations in an attempt to make them "more workable."
In an official response to the government sponsored institutional investment review by Paul Myners chief executive of Gartmore Investment Management, the NAPF listed the payment of trustees and broker commissions as concerns.
According to the association trustees should not be paid a salary and that the “legal burden” might deter would-be trustees and may give rise to a class of professional trustees.
The NAPF also warned that including costs of external research, information and transactions in management fees may have “serious unintended consequences” including poorer disclosure and higher overall costs to pension funds. It called for further independent research into the area.
The association also criticised Myner’s proposals for in-house investment support, saying that for smaller schemes outsourcing may be the only cost effective and practical approach.
By Madhu Kalia
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