Charge cap proposals not enough and more radical overhaul needed, says SPP

James Phillips
clock • 2 min read

Government proposals to employ a charge cap smoothing mechanism in a bid to incentivise defined contribution (DC) pension scheme investment in illiquid assets could have the opposite effect, says the Society of Pension Professionals (SPP).

Existing illiquid investment options do not typically produce annual accrual of performance fees, as would be needed under the Department for Work and Pensions' (DWP) suggestion. This would ultimat...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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