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Eversheds comment: UK OFT delivers damning verdict on DC pensions market

  • United Kingdom

    19-09-2013

    The UK Office of Fair Trading (OFT) has today published its 'Defined contribution workplace pension market study'. Commenting on the study, Francois Barker, head of pensions at international law firm Eversheds, says:

    "The OFT has delivered a pretty damning verdict on the state of the DC pensions market, concluding that competition in the market has failed due to the fact that the buyer side of the market is one of the weakest that it has analysed in recent years. It is positive that the ABI and its members have responded by agreeing to put in place independent governance committees and to carry out an audit of legacy schemes. Trustees of DC schemes also need to up their game using the Pension Regulator's new Code of Practice on DC Governance as a starting point. However, further action will need to be taken by the Government and regulators to address the issues identified by the OFT, in particular, to promote effective governance and ensure scheme charges represent good value for all members."

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