Following several weeks of criticism from a number of private sector associations in the wake of his UK pension reform proposals, Lord Turner has finally found an ally in the Investment Managers Association.
Both the National Association of Pension Funds (NAPF) and Association of British Insurers have attacked Lord Turner’s National Pension Savings Scheme (NPSS) by labeling it unrealistic in its parameters and even Stalinist in its philosophy (at least according to Christine Farnish, chief executive of NAPF). However, the Investment Managers Association has come out in broad support of the proposal, claiming that NPSS is feasible.
In contrast with its fellow private sector representative bodies the IMA believes Lord Turner’s plan is affordable and probably the cheapest option, making it perfectly workable. It seems the obvious way to do it, according to the IMA chief executive Richard Saunders.
However the IMA was not totally out of line with the NAPF and ABI: while broadly supporting the state scheme it did add its voice to the chorus of calls against the proposal to restrict administrative costs to 0.3% of managed assets. The IMA also strongly suggested that a cap on these fees should not be imposed.