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Law Commission reviews DC charge cap

The Law Commission has warned that the 75 basis point cap on charges for defined contribution default funds could stop members investing in assets which benefit society.

Law Commission reviews DC charge cap
Photo: iStockPhoto

The Law Commission has warned that the 75 basis point cap on charges for defined contribution default funds could stop members investing in assets which benefit society.

In a call for evidence from investors, distributed on November 8, the commission, which is in charge of reviewing UK law, said the cap could be forcing investors into a narrow range of asset classes: "There is very little investment in infrastructure, including socially significant investment, such as affordable housing."

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