Value for money

Buck Consultants has introduced a service to help defined contribution (DC) trustees assess whether their schemes provide value for money for members.

Trustees struggle to assess asset managers and investment consultants, according a Financial Conduct Authority (FCA) review that also identified conflicts of interest and a lack of competition in the markets.

Insurers do not deserve the bashing they get over high fees as many already provide good value for money in contract-based schemes, according to independent trustees.

The Investment Association has set out plans for asset managers to disclose portfolio turnover rates to investors and give them an idea of how this compares to other funds.

Independent Governance Committees (IGCs) will have only limited powers to improve value for money in contract-based schemes due to legal constraints, it has been warned.