HIDDEN COSTS IN PENSION AND SAVING FUNDS

Early day motion 2597, tabled 12 January 2012 by Gareth Thomas (Labour). Signed by 50 members.

That this House notes with concern the presentation to HM Treasury by Dr Christopher Sier, a former consultant to investment managers, and David Norman, formerly Chief Executive of Credit Suisse Asset Management (UK) that high pension and saving fund hidden costs are not fully understood by consumers, could damage the fragile savings culture in the UK, are estimated to cost 67.2 billion a year with the greatest cost being wages and bonuses for traders and fund managers, and are rising; further notes that even the costs which are made public reveal that UK funds are in many cases more expensive to invest in than funds in France, Germany and the US; believes that without reform pension funds management business opportunities for the UK financial services industry could be lost; and calls on the Government to take urgent action to drive pension charges down and help the next generation of pensioners and the communities they live in to have a safer, more secure future.

Signatures by party: Labour 44, Liberal Democrat 3, Conservative 1, DUP 1, Social Democratic and Labour Party 1.