Since April 2015, the governance bodies of defined contribution workplace pensions have been required to seek to obtain information on charges and transaction costs and explain the extent to which they offer good value for members.
Since January 2018, asset managers have been required to respond to requests for such information about costs and take reasonable steps to provide:
The FCA slippage cost methodology is based on the concept that underpins one of the two methodologies for calculating transaction costs for products subject to the Packaged Retail and Insurance-based Products (PRIIPs) Regulation. However, there are a number of technical differences in the detail.
In February 2018 the Department for Work and Pensions (DWP) made new rules requiring trustees to make costs and charges information relating to defined contribution occupational pension schemes publicly available on a website for scheme years ending on or after 6 April 2018.
In February 2019 the FCA published a consultation on proposals to achieve similar outcomes for workplace personal pension schemes.