How a pension charge tweak could boost investment into British start-ups

The financial watchdog’s proposals to relax pension charge cap rules could help boost investment in start-ups and private companies, bosses have said, after efforts to unleash a wave of investment from Britain s retirement funds have stalled in recent years. The Financial Conduct Authority (FCA) yesterday floated excluding certain performance-linked fees from the charge cap for default funds in workplace pensions in its latest consultation paper. Critics have argued that a 0.75 per cent fee cap has restricted pension providers from investing in private markets assets including private equity and venture capital, which historically have struggled to fit their fees below the regulatory ceiling. The watchdog argued the reforms provide “greater flexibility”, allowing access to investments which can “improve long-term returns for value”, while industry figures said it could lead to more capital entering these riskier assets. “The FCA’s proposals are a welcome recognition that th