The Investment Association responds to FCA consultation on Value for Money Framework
Jonathan Lipkin, Director of Policy, Strategy and Innovation at the Investment Association commented:
“Ensuring the UK pensions system is fit for purpose is crucial for the millions of households that will rely on retirement income in later life. For too long, the DC pensions market has been heavily focused on price rather than investment outcomes, with low cost often conflated with value for money. The recognition by regulators of the need for this to change – clearly signalled again in the FCA consultation – is very welcome.
"Transparency of investment performance and process is a key part of assessing value and we are supportive of more investment-focused metrics. However, the proposed cross-scheme comparisons, the RAG rating process, and the new business ban in combination could have significant negative consequences for customer outcomes. Getting the Framework right will take more consideration, with the starting point being whether a scheme has delivered against its own stated objective."
Read the Investment Association's full response here.
For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4620
Ellen Hodgetts, Communications Manager: [email protected]
T: +44 7548841289
Ismail Abdi, Communications Executive: [email protected]
T: +44 7596 872575
IA Press Office: [email protected]
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £9.1 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.
