Government announcement on ending hidden pension costs and fees
Commenting on news that the Government is to announce measures to reveal hidden costs and fees in the pensions industry, Gina Miller, founder of SCM Private and the True and Fair Campaign stated:
Posted By: True and Fair, 4:20 pm
“The writing is finally on the wall for rip-off pension and investment costs and fees. However it is staggering that it takes Government action to make the pensions industry disclose these costs to pension savers.
The EU last week announced changes to the MiFID II directive requiring all investment fund costs to be reported in one number; the OFT has issued a report identifying hidden costs and fees in the pensions industry; and the Government has now stepped in and said it will be announcing measures to force the disclosure of hidden charges. Despite this, the financial services industry continues to fail to end this rip-off.
The ABI has responded to news of Government action on pension charges by saying it welcomes the idea of increased transparency on charges – if that is true then why not act now rather than wait for legislation? When we launched The True and Fair Campaign back in January 2012 we estimated as much as £18.5 billion was being hidden in just transaction costs. We have been calling for the end to all this pickpocketing but all the industry has done is issued empty words, worthless codes and consultations.
We do not need any more excuses and delays from self-serving industry bodies; we need action to safeguard the interests and basic rights of pension savers. We need transparency and governance that will rebuild trust and encourage people to save.
This Government announcement is welcome but we look forward to seeing the details.”