What the proposal would change
The Financial Conduct Authority opened a consultation on November 12 on excluding certain performance-linked fees from the charge cap for default funds in workplace pensions it regulates.
Its consultation overview puts the current cap at 0.75% of funds under management. The proposal aims to make access to investments such as private equity, venture capital and private credit more flexible. It is not a final rule change.
An option with safeguards
The FCA says providers would have an option to use the exemption, rather than an obligation. Higher charges would need to be justified by additional value for savers.
Proposed safeguards cover transparency, fair allocation of fees between savers and scrutiny of private-asset valuations. The regulator seeks closer alignment with trust-based pension rules changed in 2023.
How to respond
Comments are due by January 14, 2027 through the consultation page. The FCA currently expects final rules in summer 2027 after considering feedback; it has not announced an exact implementation date in this overview.
