FCA plan to extend Mifid test could scupper ‘default’ funds

“We really don’t want any unintended consequences of a voluntary Mifid extension when we don’t need to do one, particularly for auto-enrolment. We urge the FCA not to bring pensions under the Mifid microscope at this stage.”

An Aviva spokesperson added: “A small number of our default workplace funds do invest in derivatives and we are working to make sure we comply with Mifid II when it is introduced.

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“All auto-enrolment workplace schemes now have governance oversight - either trustees or Independent Governance Committees - and they will consider the appropriateness of default funds on an ongoing basis.”

The FCA’s formal consultation paper will be published within a few months, with final rules set to be implemented by the end of this year.