Annex B: List of consultation questions
Updated 21 June 2021
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This publication is available at https://www.gov.uk/government/consultations/improving-outcomes-for-members-of-defined-contribution-pension-schemes/annex-b-list-of-consultation-questions
Chapter 1: Summary
No questions
Chapter 2: Encouraging Consolidation
Q1: We would welcome your views on the reporting of net returns – how many past years of net returns figures should be taken into consideration and reported on to give an effective indication of past fund performance?
Q2: Do you think that the amending regulations achieve the policy aims of encouraging smaller schemes to consolidate into larger schemes when they do not present optimal value for members?
Q3: Do you believe that the statutory guidance increases clarity about the minimum expectations on assessing and reporting on value for members for specified schemes? Are there any areas where further clarity might be required?
Chapter 3: Diversification, performance fees and the default fund charge cap
An in-year adjustment to prorating performance fees
Q4: Do the draft regulations achieve the policy intent of providing an easement from the prorating requirement for performance fees which are calculated each time the value of the asset is calculated?
Creating a multi-year rolling calculation approach
Q5: What should we consider to ensure a multi-year approach to calculating performance fees works in practice?
Q6: We are proposing a five-year rolling period. Is this appropriate or would another duration be more helpful?
Q7: We are proposing offering a multi-year option as an alternative to an in-year option for schemes. Do you have any suggestions for how to improve this offer?
Q8: To what extent will providing a multi-year smoothing option give DC trustees more confidence to invest in less liquid assets such as venture capital?
Costs of holding physical assets
Q9: Do the draft regulations achieve the policy intent? Do you have any comment on the definitions used?
Chapter 4: Using transparency as a prompt
No questions
Chapter 5: Updates to Statutory Guidance: Reporting costs, charges and other information
Q10: Do you believe that the updated statutory guidance increases clarity about the minimum expectations on both the production and publication of costs and charges information? Are there any areas where further clarity might be required?
Chapter 6: Other changes to legislation
Q11: We propose that where the default arrangement includes a promise, the trustees of the scheme should be required to produce a default SIP.
We propose that this should be produced within 3 months of the end of the first scheme year to end after the coming into force date.
(a) Do you agree with this policy?
(b) Do you agree that the legislation achieves the policy?
Q12: We are proposing that, for relevant schemes, charges and transaction costs should be disclosed for any fund which members are (or were) able to select and in which assets relating to members are invested during the scheme year.
(a) Do you agree with this policy?
(b) Do you agree that the legislation achieves the policy?
Q13: Do you agree with this proposed change? Do you have any other comments on this topic?