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The take up of the Cost Transparency Initiative (CTI) framework by pension schemes has increased by nearly 25% since May 2020, with the Pensions and Lifetime Savings Association (PLSA) lauding its “tangible benefits” for schemes.
By IPE Staff2021-05-12T12:18:00+01:00
A recent survey has shown that pension schemes in the UK are beginning to experience tangible benefits from having greater transparency of their investment costs – 79% of schemes are now making use of standardised templates and tools developed by the Cost Transparency Initiative (CTI), up from 56% in May 2020.
The CTI framework, an initiative between the Pensions and Lifetime Savings Association (PLSA), the Investment Association (IA) and the Local Government Pension Scheme Advisory Board (LGPS AB), is an industry standard designed to allow investment managers and asset owners to collect and compare costs and charges in a standardised and transparent way.
Managers in U.K. question what disclosure really means
Bloomberg
Some money managers operating in the U.K. have been called out for not complying with cost disclosure industry standards, but sources argue a big part of the problem is that investors and managers can differ on what s sufficient disclosure and how it s presented.
Cost templates created by an investor and manager group known as the Cost Transparency Initiative aim at helping U.K. investors determine hidden non-management fees that money managers charge as part of overall costs. They also help to determine transaction costs.
Since the introduction of the templates in 2018, retirement plans have been requesting information on manager costs via companies that collect this information.
DWP bans flat-fee AE charges on pots worth under £100
Opperman: No-one should find their hard-earned pension savings eaten away by charges
The Department for Work and Pensions (DWP) will ban the charging of flat fees on auto-enrolment (AE) pots valued at or below £100 and launch work on how to standardise cost and charges reporting.
The government s response to its review of the default fund charge cap and standardised cost disclosure, published today (13 January), said that pensions pots that are worth £100 or less, and are saved.
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