Publication
Essential Corporate News – Week ending 10 January 2025
On 20 December 2024, the Financial Conduct Authority published PS24/17, Enhancing the National Storage Mechanism (NSM).
DWP considers removing performance-based fees from charge cap
United Kingdom | Publication | December 2021
The DWP is consulting over removing performance-based fees entirely from the 0.75% charge cap that applies to DC default funds. The aim is to further encourage DC schemes to invest in illiquid assets, such as infrastructure, to aid the UK’s economic recovery.
Although new laws were introduced from October allowing trustees to smooth performance fees over a period of 5 years, the Government is concerned these changes do not go far enough. The Productive Finance Working Group (convened by the Bank of England, HM Treasury and the FCA) recently recommended further consideration of the performance fees and charge cap issue and the Chancellor promised another consultation in the autumn budget.
The DWP recognises that there are other barriers to the type of DC investment the Government is keen to promote, such as daily pricing. It accepts that changes to the charge cap alone will not act as a 'silver bullet' for all issues but hopes to remove at least one barrier DC trustees may face.
The consultation closes on January 18, 2022.
Partner
Email
lesley.browning@nortonrosefulbright.com
Recent publications
Publication
The ESG advertising conundrum: Recent case highlights challenges
A recent decision made by the UK's Advertising Standards Authority (ASA) brings into sharp relief the challenges for airlines to strike a balance between marketing their sustainability efforts in an understandable and compelling way, whilst avoiding criticism for “greenwashing”.
Publication
Agreement on new EU gas projects and measures under the European Green Deal
On November 28, 2023, the European Commission (EC) adopted its first list of Projects of Common Interest (PCIs), i.e., projects within the EU territory, and Projects of Mutual Interest (PMIs), i.e., projects connecting the EU with other countries, including 166 projects implementing the European Green Deal.
Subscribe and stay up to date with the latest legal news, information and events . . .