Royal London Says 1.5% UK Pension Expense Ratio Cap Is Still Too Low

Fund manager Royal London has welcomed the increase in the expense ratio cap agreed by the UK Government for "Sandler products." However, the company says it still believes that the charge structure, with an annual management charge alone, will not

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Fund manager Royal London has welcomed the increase in the expense ratio cap agreed by the UK Government for “Sandler products.” However, the company says it still believes that the charge structure, with an annual management charge alone, will not cover the cost of providing financial advice. Gareth Evans, Head of Corporate Affairs for Royal London, said “The price cap – even at 1.5% – does not allow firms to cover the cost of up front, in depth advice to all. Without individual advice there is the clear danger of unsuitable products being bought. That is why we strongly supported a better “shape” of charging structure, such as an up front charge to cover the cost of advice and a 1% or lower annual charge.”

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