Lack of cost transparency within pension investment industry explored

5 February 2019

The Committee is currently looking again at Pension costs and transparency after its inquiry into Pension freedom and choice exposed the complicated world of pension charges, such as the up-front “contingent fees” paid to advisers, to the small-print ongoing charges and exit fees that can decimate retirement savings. We are concurrently holding a short inquiry specifically into the issue of contingent fees – Charing for pension transfer advice - that is paid to advisers, irrespective of how suitable their financial advice is.

The inquiry is looking broadly at whether the pensions industry - comprising pension schemes, asset managers, intermediaries or consultants and advisers - provides enough clarity and transparency around charges, investment strategy and performance; and the effectiveness of policy and regulation in this area.

In this third evidence hearing of the inquiry the Committee will be asking the regulator in charge, the FCA, to explain the lack of cost transparency within the pension investment industry and what is now being done to address it; what can be done to make the pension marketplace work more effectively for savers, and - with recent reports of global investors demanding more accountability on environmental risk from fast food giants like McDonalds - is there a need for greater transparency around how retirement savings are invested?

Witnesses

Wednesday 6 February 2019, Palace of Westminster, Committee Room 6

At 09.30am

Andrew Bailey, Chief Executive, Financial Conduct Authority
Chris Woolard, Executive Director of Strategy and Competition, Financial Conduct Authority
Deborah Jones, Director of Life Insurance and Financial Advice, Financial Conduct Authority
Pritheeva Rasaratnam, Head of Pensions and Funds Policy, Financial Conduct Authority

Further information

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