The Association of British Insurers (ABI) has issued a blow to Paul Myners' report on UK institutional investment by urging the government to rethink proposals to end broking commissions.
The ABI call follows a similar move by the National Association of Pension Funds (NAPF) which urged the Government towards independent academic research in to the area before committing to the draft principle.
According to a spokesman for the ABI, “present proposals could harm the interests of pension fund members and increase their costs”.
Under Myners’ recommendations broking commissions for share dealing and research would be included as part of the fund management fee.
The ABI refutes this proposal on the following grounds:
- that it could encourage a shift to net trading, thereby reducing transparency of fees for pension funds;
- that it could cause a trend towards consolidation of fund management at the expense of small cap companies;
- that it could promote higher research charges and a possible reduction in research activity in mid and small cap companies.
By Madhu Kalia
Royal London saw its new group pension business decline over the first half of 2018 as the rollout of auto-enrolment (AE) drew to a close, according to its interim results.
Now Pensions has made "huge progress" in resolving legacy administration issues - switching systems and completing unit adjustment for a "large proportion" of members, it says.
Trustees of the Airways Pension Scheme (APS) will not make a firm decision on whether to appeal the Court of Appeal's judgment on discretionary increase payments until September.
Accountant Hashmukh Shah has pleaded guilty to deliberately providing false information to The Pensions Regulator (TPR) when stating a pension scheme had been set up for staff of a London-based restaurant.