LONDON Dec 13 A sizeable minority of workplace
pension providers are not doing enough to cut their fees and
will be asked to explain their slow progress, Britain's
financial watchdog said on Tuesday.
Most providers have responded well to a call to put plans in
place to cut fees and charges on savers' funds in defined
contribution workplace pensions by the end of 2015, the
Financial Conduct Authority said in a statement.
The recommendation by the Independent Project Board (IPB)
followed a 2013 market study by the Office of Fair Trading which
found that 30 billion pounds ($38.12 billion) of savers' assets
were at risk of delivering poor value for money.
While more than 1 million customers now pay lower charges
than before, the FCA said progress was still unsatisfactory or
unclear for 16 percent of the assets in contract-based schemes,
and 15 percent of assets in trust-based schemes.
As a result, the FCA and the Department for Work and
Pensions would shortly be contacting those providers to ensure
that savers are being treated fairly.
"We have seen good progress towards the goals that the IPB
laid out but this is not the end of the story. Firms should
continue to work to ensure that value for money is being
consistently delivered," Andrew Bailey Chief Executive at the
"There is still more to do so we will be contacting the
providers who have not yet taken satisfactory actions to remedy
poor value schemes and we expect them to act swiftly to ensure
good value for customers."
($1 = 0.7870 pounds)
(Reporting by Carolyn Cohn; editing by Simon Jessop)