Consultation outcome

Incorporating performance fees within the charge cap

From:: Department for Work and Pensions
Published: 19 March 2021
Last updated: 14 March 2023 — See all updates

Applies to England, Scotland and Wales

Download the full outcome

Government response: Improving outcomes for members of defined contribution pension schemes

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Government response: Improving outcomes for members of defined contribution pension schemes

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Detail of outcome

This is the government’s response to 2 important consultations on occupational Defined Contribution (DC) pension schemes’ investments and overall governance:

this March 2021 consultation ‘Incorporating performance fees within the charge cap’ on draft regulations on performance fee smoothing and a call for evidence on the issue of look-through
September 2020 consultation on draft regulations and statutory guidance to deliver better value for money for members of DC schemes

Over the past 12 months, the government has set out a series of measures to prepare the DC occupational pensions market for the challenges and opportunities ahead - this response finalises important next steps.

Original consultation

Consultation description

This consultation is the next step to the consultation ‘Improving outcomes for members of defined contribution schemes’. It contains the government response to the performance fee section (Chapter 3) of the September 2020 consultation and consults on consequential draft regulations. The government aims to publish a response to this consultation alongside a response to the remainder of the September 2020 consultation, including final draft regulations and final statutory guidance, in June 2021.

This consultation also seeks views at this stage on the current position on look-through in relation to charge cap compliance, as a potential barrier to investment in alternative asset classes, particularly venture capital and growth equity. The government’s June 2021 response will include a summary of responses we receive and next steps on this issue.

The consultation is aimed at:

pension scheme trustees and managers
pension scheme members and beneficiaries
pension scheme service providers, other industry bodies and professionals
civil society organisations
any other interested stakeholders

Please send your consultation responses via email to:

Sam Haylen, Vicky Bird, Tessa Lubrun and Andrew Blair
pensions.investment@dwp.gov.uk

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