Insight
Title:
The pensions charge cap could distort the market
Description:
Aegon says pension charge cap to cost firm £25m a year
Money Marketing, 22/05/2014, p.16, Unattributed
Aegon estimates the pensions charge cap will cost the business up to £25m a year. The Department for Work and Pensions confirmed in March that any scheme with a charge of over 0.75 per cent would not be eligible for autoenrolment from April 2015.
In addition to establishing a charge cap, it could also become a defacto charge floor with some firms artificially sustaining that price level (although many funds are already priced below that level).
PESTEL:
Political
Five Forces:
Bargaining power of buyers