The FCA has published Policy Statement 15/5: Final rules for charges in workplace personal pension schemes and feedback on CP14/24 (PS15/5).
In PS15/5 the FCA sets out final rules relating to qualifying workplace personal pensions schemes. The rules that the FCA will introduce are:
- a cap on the charges within default funds equivalent to 0.75% per year of funds under management;
- preventing firms from paying or receiving consultancy charges;
- preventing firms from paying commission or other charges for advice that are not initiated by scheme members; and
- preventing firms from using differential charges based on whether the member is currently contributing or not.
The new rules will come into force on 6 April 2015.