We have published rules to implement a charge cap on default funds for automatic enrolment and bans on certain charging practices in workplace personal pension schemes we regulate. Similar measures will be implemented by the Department for Work and Pensions (DWP) in regulations for occupational schemes for which The Pensions Regulator (TPR) will be responsible.
In October 2014 we consulted on our proposed rules. These require firms that operate workplace personal pension schemes used for automatic enrolment to implement a charge cap within the default funds of those schemes. They also prevent providers from using differential charges based on contribution status and from paying commission and other banned remuneration to advisers for services not initiated by scheme members in workplace personal pension schemes.
This Policy Statement summarises the responses to our consultation, provides our response to the feedback and publishes the final rules.
These rules form part of a package of measures aimed at improving governance and value for money in workplace pension schemes.
This Policy Statement will be of interest to:
The charge cap will apply from 6 April 2015 or the date from which a scheme becomes a Qualifying Scheme for an employer.
Firms affected by these changes will need to:
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