UK government deals another pensions blow to insurers

A fee cap of 0.75% a year on pensions, first trailed late last year, will apply from April 2015, government confirms

The UK government has confirmed it will introduce a hard cap on pension-fund charges at 0.75% of assets per year — a policy that will deal another blow to the insurance industry, just a week after the Chancellor rocked the annuity market.

Announcing the change in Parliament this morning, Steve Webb, UK minister for pensions, said he would bear down on costs "like a vice". Representatives from the Labour Party immediately accused him of stealing their policy.

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