FCA launches consultation for greater pension investment flexibility
The Financial Conduct Authority (FCA) has launched a consultation seeking views on proposals to exempt certain performance fees from the charge cap for workplace default pension schemes operated by FCA-regulated firms.
13 Nov 2026
The Financial Conduct Authority (FCA) has launched a consultation seeking views on proposals to exempt certain performance fees from the charge cap for workplace default pension schemes operated by FCA-regulated firms.
The proposed changes would mean that providers would be able to access a greater range of investments more flexibly. It is intended that this would improve outcomes for savers in the long run. The changes would bring FCA rules more in line with those for trust-based pension schemes which have excluded performance-linked fees from the charge cap for several years.
The FCA is proposing safeguards including the fair allocation of fees between savers and have made it clear that the flexibility should not result in providers charging savers more.
Therese Chambers, executive director of enforcement and market integrity at the FCA, said:
'People's pension savings should work hard for them. We want providers to have greater choice over how they invest for the long term where this can deliver better outcomes for savers.
'But greater flexibility is not a licence to charge more. Any higher charges must be justified by additional value, with firms carefully weighing returns, risks and costs when deciding what is in savers' best interests.'
FCA expects to make any changes to the rules in summer 2027.
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