Broadstone questions the Government’s obsession with imposing a charging cap

David Brooks

Talk to David:

david.brooks@broadstone.co.uk

020 7893 2262

Pensions Consultants at Broadstone Corporate Benefits Ltd are questioning the Government’s intention to legislate a charging cap for auto-enrolment schemes.

David Brooks, Pensions Consultant at Broadstone, commented that “setting a sub-1% charge limit is a pointless throw-back to the time of stakeholder, and while it sounds like the Pensions Minister is taking affirmative action, most auto-enrolment schemes will already be beating this cap.” Brooks added “The argument for a charging cap surely is one that flies in the face of a free-market already in a race to the lowest possible charges.”

Brooks concluded that “the Pensions Minister, should follow the OFT report’s recommendations and focus on pre 2001 legacy schemes which actually may not be proving the best value for members.”

David Brooks

Pensions Consultant