OFT ‘should have gone further on DC demands’

The chief executive of the National Association of Pension Funds said the body’s long-awaited probe into the market, which was published on 19 September, “may fail to deliver the right outcomes for savers” on issues including charging.

The organisation submitted a response to the OFT consultation on its proposals, which included a ban on active member discounts, audits of legacy schemes and the introduction of independent governance commitees. The consultation closed on 31 October.

Ms Segars said that placing governance committees at provider level “could lead to conflicts of interest, while the ban on AMDs will “penalise consumers” in certain cases.

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She added: “It is essential that the government and regulators bring in policies that ensure sustainable and good DC pension provision in the long term.

“Acting quickly will ensure that pension savers, especially those who will be saving into a pension for the first time through automatic enrolment, benefit from these improvements from the outset.”