Regulatory Alerts2019-02-27
Added · Updated
Publishing and disclosing costs and charges to workplace pension scheme members and amendments to COBS 19.8
The Financial Conduct Authority introduces rules requiring scheme governance bodies of FCA-regulated defined contribution workplace pension schemes to publish and disclose costs and charges information to members. Scheme governance bodies must include transaction costs and administration charges for default and alternative fund options in the Chair’s report, publish this information free of charge on a website within seven months of the scheme year end, and provide annual communications to members. The rules exclude one-worker schemes and amend COBS 19.8 to clarify the calculation of transaction costs, specifically regarding anti-dilution benefits and OTC bond transactions. Firms must comply with these requirements with effect from April 2020.