U.K. opposition lawmakers are calling for pension-fund managers to cut their fees in order to boost the amount of money savers set aside for their retirement.
In a motion calling for a debate in the House of Commons, 33 Labour Party lawmakers urged the government today to take steps to reduce fees and commissions from traders and fund managers of as much as 67 billion pounds ($103 billion) a year.
“Hidden costs in pension and savings funds are the City’s dirty secret,” said lawmaker Gareth Thomas. “They risk making Britain less competitive than our major competitors. Worse, they risk making the next generation of pensioners and the communities they live in poorer and less resilient.”
Citing research presented to the Treasury by Christopher Sier, a former consultant to investment managers, and David Norman, formerly chief executive officer of Credit Suisse Asset Management, the lawmakers said fees are higher in Britain than in France, Germany and the U.S.
Their proposal is contained in an Early Day Motion, a formal submission designed to draw attention to an issue. Few of them are actually debated in Parliament.
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