TISA responds to NAPF pension charges consultation
TISA has issued its response to the NAPF ‘Telling employers about DC pension charges – a consultation on a draft Code of Conduct’.
Malcolm Small, TISA Director of Policy said:
“TISA is strongly supportive of the purpose of the NAPF Code of Conduct and believes that the code and provision of a charging document should apply to all pension schemes being used for automatic enrolment. We feel that a requirement that all charges should be clearly and accurately stated in writing in a ‘Summary of Charges’ document for employers and in a standard format to help employers make comparisons between schemes would be a welcome move.
“We broadly support the scope of the proposed Code, in that it should apply to all parties providing services to employers in setting up and administering pension schemes. This approach is important in ensuring that all charges, including ‘hidden charges’ are taken account of. We would also like to see the Code used for all funds, rather than just the default fund, used for automatic enrolment schemes.
“Whilst a standardised Charges Guide should be used to enable employers to make meaningful comparisons, we do however envisage some challenges in implementing the approach given the number of potential players contributing to the overall charges, and the potential lack of clarity around the responsibilities of each party in ensuring that the overall information provided is accurate and complete. Our view is that it will be helpful for employers to have a comparison within the Charges Guide, rather than just the information for the scheme under consideration.
“The implementation of the Code is likely to require some considerable thought as there are many complex issues to be considered. We believe that it is too ambitious to aim for implementation by the end of this year. Our view is that implementation should be mandatory and is included in the responsibilities of the Pension Regulator.”
A copy of the full response is available on the TISA website: www.tisa.uk.com
Ends……
For further information, please contact:
Malcolm Small, Director of Policy, Mobile: 07989 500771 Email: malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of savings vehicles & services and centralised investment propositions.