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Government consultation on pension charge cap

In response to the Government launching a consultation to help savers and protect pensions pots, Otto Thoresen, ABI Director General said:

"The industry recognises the concern about charges, which are now at their lowest ever average level of 0.52%. It is important that any cap doesn’t have the effect of levelling charges up.

"The Office of Fair Trading raised a number of concerns about this when deciding not to recommend a cap in its recent study of workplace pensions. The detail around what is included in the charge definition will be crucial, as is the need to recognise that other factors contribute to customers receiving value for money.

"The industry is committed to making pension reform a success and of course will engage fully with this consultation.”

Last updated 01/07/2016