CA Summit – Government ‘behind the curve on charges,’ says McClymont

Shadow pensions Minister, Gregg McClymont, accused the coalition government of being ‘’behind the curve on charges” because it had failed to collect data on what pensions schemes are being charged.

He said pensions minister Steve Webb’s claim to be ‘watching charges like a hawk’ was an empty statement because it was nearly impossible to compare scheme charges when there is no comprehensive disclosure regime. He added that a future Labour government would cap AMCs at 1 per cent. 

“There is a need for greater clarity of the offer to savers as they currently don’t understand the impact of charges,” he said.

McClymont said he rued the lack of quality criteria for auto enrolment schemes and that it was essential that there are good default funds, with low costs. “I want to sort this problem before SMEs start to auto enrol.”

But delegates hit back saying that there was little appreciation of the added value provided by advisers.