The planned cap on annual management charges (AMC) for pension schemes is too narrow and risks bringing an "artificial" element to the market, Scottish Life has said.
Business development manager Fiona Tait said the provider was against the plan - put out for consultation by the Department for Work and Pensions last week - as it "brings in something artificial". "Where people talk about charge caps I am not sure they are sure about what they are capping. If they are capping the AMC I do not think it will achieve anything. AMC charges are the one area of pensions where prices have consolidated and come down a lot." She explained that the AMC does not represent additional charges such as administration, varying investment charges and the price of adv...
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