FirstFT: Retirement savers face higher fees as Sunak seeks billions to ‘boost’

Ministers seek to relax rules protecting tens of millions of UK pension savers from high burdens as they step up efforts to funnel pension fund liquidity into the government’s “leveling” agenda.

Officials are working on proposals to dilute the 0.75% cap on annual management fees, which was put in place in 2016 to protect workers automatically enrolled in company pension plans against erosion of their savings by high loads.

Rishi Sunak seeks to mobilize billions of pounds of pension funds to invest in long-term projects, including infrastructure projects, renewable energy and innovative technology companies, to help deliver on Boris Johnson’s pledge to disseminate economic growth across the UK.

However, many of these assets are held in funds managed by private equity and venture capital firms, which typically charge performance fees tied to certain thresholds on annual returns.

Managers of defined contribution pension plans have been reluctant to invest in private equity and venture capital funds, largely because they feared those fees might exceed the 0.75% cap.

Thanks for reading FirstFT Europe / Africa. Here’s the rest of today’s news – Gary

Five other articles in the news

1. Credit Suisse offer angers Greensill investors Credit Suisse clients suing the bank over the collapse of its Greensill-linked supply chain finance funds have reacted angrily to an offer of free services – including reimbursement of brokerage fees and advice in investment – for those who have not filed a claim. Customers may become eligible for the discounts if they drop the lawsuits, a person briefed on the offer said.

2. Calls to invest in childcare to increase women’s incomes Investing in child care would increase the annual income of working mothers in the UK by up to £ 10 billion, generating an additional 3% for the economy, according to a study by the think tank Center for Progressive Policy.

3. UK trade groups warn of closures without tariff reform More than 40 trade associations representing 9 million employees have called on ministers to reduce the burden of trade rates or risk store closings and questioning net zero ambitions.

4. The United States overtakes China as the biggest bitcoin mining center The United States overtook China as the world’s largest source of bitcoin mining two months after Beijing banned the practice. China’s share of the global hashrate – the computing power required to create cryptocurrencies – fell from 44% to zero between May and July, according to new data.

Video: Why Every Dogecoin Has Its Day – Crypto Explained

5. Georgieva insists “no doubt” on the credibility of the IMF IMF Managing Director Kristalina Georgieva said the fund remained a credible institution following recent allegations of data manipulated during her former head of the World Bank and pledged to boost staff morale at the continuation of the controversy.

Coronavirus digest

  • The NHS announced a £ 250million fund to improve access to face-to-face appointments with GPs, who have traveled extensively online during the pandemic.

  • Popular snacks, from Kellogg’s frozen flakes to Nabisco’s Oreo cookies, have been hit by we efforts of factory workers to obtain better working conditions.

  • Heathrow Airport plans to increase landing fees by more than 90% over five years in a bid to recoup coronavirus-related losses, sparking the fury of airlines.

Heathrow owners seek to recoup £ 2.6bn in losses © John Sibley / Reuters

The day to come

Profits of American banks Citigroup, Bank of America, Morgan Stanley and Wells Fargo release their third quarter results today, after JPMorgan kicked off the Wall Street earnings season with a sharp rise in profits and a warning that spending will continue to rise and that demand for loans would remain sluggish.

Japan to call new elections Japan will dissolve its parliament, paving the way for elections at the end of the month that will pit new Prime Minister Fumio Kishida against an unpopular opposition to repair the economy ravaged by the pandemic. (Reuters, FT)

Business of Sport US Summit Hosted by the Financial Times, with speakers ranging from BetMGM supremo Adam Greenblatt to England footballer Raheem Sterling, the summit will explore how to capitalize on the next wave of deals in the sport. Register here to join the action online.

Raheem Sterling loses opponents in England's match against Hungary at Wembley Stadium this month

Raheem Sterling shakes up his opponents in England’s match against Hungary at Wembley this month © Action Images via Reuters

As companies get used to a changing job market, a rapidly changing post-Brexit regulatory landscape, and customs and border controls that will be introduced in 2022, the new look of the FT “Britain after Brexit“A briefing will accompany you every step of the way, engaging you with the nerves and nerves of this rapidly changing world. Register now here.

What else do we read

Winter is coming for the “nation in need” The UK’s freight supply problems – with a shortage of truck drivers, rising fuel prices and a supply chain disrupted by a pandemic – have also been exacerbated by Brexit, writes Tim Harford. The country must prepare for a particularly gloomy Christmas.

Indian TV pioneer at the center of his own drama Entrepreneur and Member of the Upper House of Parliament Subhash Chandra’s story unfolds like an Indian adaptation of HBO Succession as he fights to keep his son Punit Goenka at the helm of the country’s largest publicly traded media company in the face of a shareholder revolt.

China, next big prize for global quants Interest in quantitative funds in China has exploded this year, according to fund managers and prime brokers in the region. Better hedging tools, easier access, and intensive trading by Chinese retail investors, which create many opportunities for quantitative strategies to generate returns, have combined to attract funds.

Line graph of cumulative approvals for Qualified Foreign Institutional Investor program showing foreign funds lining up for onshore access to China

Afghan hunters become hunted The sudden changing of the guard in Afghanistan has brought down hierarchies and conventions in all walks of life, with the powerful on the run and ordinary people having to adjust to new restrictions even if they oppose them.

How to Survive and Thrive with an Executive MBA For participants of the Executive MBA, the ability to study part-time alongside a full-time job is a big part of the appeal. But balancing a return to school with a career is a daunting prospect for many. Educators and students offer advice on dealing with the pressure.

To travel

Since Leviathan cruise ships are prohibited, a small riverboat is the perfect way to explore Venice. Travel writer Stanley Stewart hops between the lagoon’s less visited islands to see if they really are, as the old guides say, “populated by fishermen and madmen, romantics and hermits, busy gardeners and cloistered clerics “.

A small boat on the Venice lagoon

Thomas Mann, author of the short story “Death in Venice”, said that the lagoon city should always be approached from the sea © Giacomo Cosua

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