The Office of Fair Trading (OFT) has ordered a crackdown on pension schemes that offer poor value to millions of savers.


It is recommending a series of reforms, including new powers for the Pensions Regulator. But it has stopped short of recommending a cap on management charges, for the moment at least. It says pension schemes containing £40bn worth of savings are, or may be, delivering "poor value for money". It may be that a cap [on charges] is the right thing to do”
Clive MaxwellChief executive, OFT. The complexity of some defined contribution schemes makes it difficult for individuals and employers to make the right choices, the OFT concluded. Employers "lack the capability or the incentive to assess value for money", it said. As a result it is advising the government to consider improving the transparency and comparability of different schemes.....Read more here