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The Department for Work and Pensions (DWP) has confirmed schemes in scope will be able to apply the exemption to exclude specified performance-based fees from charge cap calculations from 6 April 2023.
The Department for Work and Pensions (DWP) has issued a consultation on removing performance-based fees from the defined contribution (DC) charge cap to drive investment in illiquid assets.
Wider issues around fund structures, complexity and lack of available funds on defined contribution (DC) platforms are at the heart of problems with illiquid investment opportunities, the industry says.
The regulatory charge cap could be amended to better accommodate “well-designed performance fees” and encourage investment in productive finance under government proposals published today (30 November).
The government could be considering launching yet another consultation into the defined contribution (DC) charge cap in order to direct cash into the government’s “levelling up” agenda.