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Consultation Responses

RE:UK response to the Value for Money Framework

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Overview

We have responded to the latest consultation on the Value for Money Framework, which aims to shift the focus of the defined contribution (DC) workplace pensions market from cost alone towards a broader assessment of overall value.

The Framework will require DC workplace pension schemes to disclose and assess standardised performance metrics across three areas: quality of service, investment performance, and costs and charges.

Our key asks

We recommend that the Department for Work and Pensions and the Financial Conduct Authority:

  • Make clear that property-level costs should not be classified as investment charges.
  • Require performance fees and carried interest to be disclosed separately from other investment charges.
  • Ensure the Framework reflects the specific characteristics of real estate investment so that costs are represented accurately and consistently.
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