Pensions Minister, Laura Trott, has confirmed plans for new regulations designed to extend the investment opportunities of defined contribution (DC) pension schemes to be brought into force by April 2023, subject to parliamentary approval.
The Department for Work and Pensions (DWP) previously consulted on new regulations and guidance that would require schemes to disclose and explain their policies on illiquid investment, as well as introduce an exemption for performance-based fees from the charge cap calculations for schemes that choose to incur performance-based fees.
Following these industry consultations, the DWP has confirmed that it will be proceeding with these regulations, with Trott confirming that she intends to bring these regulations into force by the spring, subject to parliamentary approval.
The DWP confirmed that it has made some amends to the draft regulations, taking into consideration the comments and suggestions made by respondents when finalising the Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023, which were also published today (30 January).
The title of the regulations was also updated to reflect the addition of an amendment to the Pensions Dashboards Regulations 2022.
Accompanying statutory guidance has also been published, with guidance for trustees and managers of occupational DC pension schemes on the exclusion of performance-based fees from their charge cap calculations to be effective from when the regulations come into force.
However, guidance for trustees and managers of relevant occupational schemes on new disclose and explain requirements will be effective from 1 October 2023.
The government response was published alongside a raft of broader DC measures, including plans to extend collective DC (CDC) to multi-employers, a value for money framework, and proposals to address the small pots problem.
The impact assessment for the 2023 Regulations will be published to coincide with the laying of the draft regulations.
Recent Stories