The Insurance and Pensions Commission (IPEC) has introduced a framework to regulate fees charged by pension funds, in a move aimed at protecting members from excessive costs and ensuring better value.
“It examines the value being created by different service providers of pension funds, such as asset managers, pension fund administrators, transfer secretaries, custodians, auditors, and actuaries, and assesses whether their fees for services rendered are not resulting in erosion of value for pension scheme members,” IPEC Director of Pensions and Life Insurance Supervision Mr Cuthbert Munjoma said, according to a report published by the newspaper, News Day.
“The costs of the services being offered should be outweighed by the benefits arising from such services.”
Mr Munjoma also said, “IPEC issued an expense framework, which imposes expense caps on fees that are levied on pension funds by different service providers such as pension fund administrators and asset managers. Such measures are aimed at improving consumer protection.”
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