L&G to cap default fund AE charge at 0.5%

This comes after pensions minister Steve Webb announced the government will consult on a cap charges into all schemes used for auto-enrolment (AE). L&G's announcement also precedes an Office of Fair Trading (OFT) report, due this week, into the value for money defined contribution (DC) schemes present to members. L&G's 0.5% charge covers both the annual management charge (AMC) and the fund management charge (FMC) levied on members in the default. The insurer will also offer the price deal to existing DC members. Earlier this year, L&G asked The Pensions Regulator (TPR) for permissi...