The government has launched a consultation "to understand the barriers to further consolidation of the occupational trust-based Defined Contribution market in the UK" for schemes up to £5bn, it said. The department is also moving ahead with proposals in two previous consultations around DC.
 

 
"Larger, better governed schemes are able to develop more innovative investment strategies. There are also fantastic opportunities for schemes to invest in the UK; in innovation, in infrastructure, in clean growth - underpinned by the UK’s net zero ambitions," said pensions minister Guy Opperman. 

"By not consolidating quickly enough schemes will not have the capability to grasp these opportunities with both hands. It is important that they move more quickly. This will ensure savers do not miss out but this will also help the UK build back better," he added.

The government consulted last September on requiring about 1,800 schemes with less than £100m in assets to justify their continued existence via a new value for members assessment. In its response published today, the government said it is moving forward with new regulations, which will come into force in October 2021.

"This was phase one and now we turn to phase two which will be looking to drive consolidation further and faster," said Opperman.

The new consultation closes on 29 July.

The government has today also responded to a consultation from March this year on incorporating performance fees within the charge cap, going ahead with new regulations that will allow schemes to smooth performance fees over five years. They will come into force on 1 October 2021.
 

Tim Gosling

David Bird

Andrew Cheseldine

Michael Clark

Richard Butcher