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Labour lends support to fairer fees campaign
by Michelle Abrego on Sep 24, 2013 at 13:53
Labour has thrown its support behind a campaign for more transparency around fund manager fees and financial product charges.
Speaking at the Labour party conference in Brighton, shadow pensions secretary Gregg McClymont backed the True and Fair campaign run by the founders of SCM Private, Alan and Gina Miller.
He said the campaign was crucial for generating trust in financial services and rebuilding the savings culture.
‘Its’ important because if we want to build a savings and investment system that everyone can get behind and understand as delivering value for money then the starting point is getting these things [fund manager charges] disclosed,' he said.
McClymont (pictured) though urged caution over possible moves to retrospectively ban commission payments.
The government has already banned consultancy charging, and will consult over whether the ban should extend backwards.
Last week’s report into workplace pensions by the Office of Fair Trading called for a ban on what it referred to as built in commission in auto-enrolment schemes.
‘As a general principle I’d be cautious about getting retrospective action but I think in both those cases we actually need to see what the numbers are,’ he said. ‘The government is looking at the issue of auto-enrolment schemes set up with these charges so we have to see what the scale of the problem is and balance that against a caution of the principle of retrospection, that applies to the principle of the legacy schemes.’
He also recommended that all pension schemes should have a board of trustees and that the government should work to encourage schemes towards charging 50 basis points.
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