Raj Mody, global head of pensions at PwC, said:
“Confirming recent rumours, we heard the Chancellor confirm today that the government will consult further on pension charge caps before the end of the year.
“No definite changes or reforms were announced in today’s speech, but the fund management and pensions industries - as well as those creating ‘the most innovative businesses’ who would benefit from a change - will welcome today’s news.
“A key point to note is that increasing flexibility in charge caps would not by itself lead to a massive surge in investment in higher cost and higher growth projects. For any change to work, the government would need the whole ecosystem of institutions, fund managers and savers to be behind it.
“Savers might be supportive if it means access to better returns on their savings, but would want to ensure that the risk and returns are worth the cost - which are still to be determined. It remains to be seen how far the government will allow fund managers to go in terms of passing on a share of their performance fees to members.”
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