Commenting on the DWP Consultation incorporating performance fees within the charge cap, William Chan, Head of DC Investments, Hymans Robertson says:

"We welcome the DWP's consultation on performance fees within the charge cap as our main priority has always been the delivery of good long-term outcomes for members. We believe there are attractive opportunities in private markets and illiquid assets to support this goal, but are worried that the direction of travel in terms of regulation may prohibit, rather than promote, access to these markets which can enhance value.

"Ultimately, our concern remains that members will not benefit from the potential investment opportunities that exist to improve their long-term outcomes unless we can shift the emphasis away from the absolute level of charges, and avoid unnecessarily complex frameworks for accessing private markets. We are urging the DWP to engage leaders in the DC industry to develop a different set of regulations that supports, not hinders, investment innovation."