What are the priorities for the IGC?
22 March 2016
Last year the Independent Governance Committee (IGC) and Prudential agreed an action plan to be implemented during 2016, ensuring that value for money is clearly demonstrated for members. The IGC has commended us on our actions to date.
The key points in the IGC statement for 2015 which have been agreed with Prudential are:
- Policy fees have been capped at a maximum annual level of £24.
- Initial and exit charges on workplace pensions are being removed so that a customer in a unit-linked investment should not be paying more than 1% Annual Management Charge (it is a legal requirement that default funds used for auto-enrolment are subject to a maximum charge of 0.75%).
- To highlight options to members that are invested in ‘specialist funds’ which charge more than 1% Annual Management Charge.
- To highlight the effect of policy charges to members with ‘small pots’ and offer options to mitigate fund values being eroded - this is part of a cross-industry solution that we fully support.
During 2016, the IGC will look at the quality of our communications and have already input into our communications review.