UK Proposes Pension Private Market Flexibility

Britain's financial watchdog proposed giving workplace pension providers greater flexibility to invest in private markets. The rule change excludes certain fees from the default fund charge cap while adding transparency safeguards.

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo

The United Kingdom's finance watchdog proposed giving workplace pension providers greater flexibility to invest in private markets by excluding certain performance-linked fees from default fund charge caps. The regulatory shift aims to unlock capital for private equity, venture capital, and private credit asset classes. Savers could see enhanced long-term returns, provided higher fee structures are matched by tangible performance value.