Otto Thoresen, Director General of the Association of British Insurers (ABI), has responded to Labour’s policy document on pension reform.
Thoresen was less than impressed with the document, expressing his view that it had a ‘back of the envelope’ feel to it and describing the document as both disappointing and hugely misleading.
He went on to say that charges had been falling for a decade, and cited the average Annual Management Charge of 0.77%.
Thoresen explained that the higher costs Labour referred to are transaction costs, including stamp duty, and are relevant only to some particular actively managed funds.
He advised Labour, if they were concerned by high costs, to commit to lowering stamp duty.
Thoresen concluded that it was hugely frustrating to see Ed Miliband and Labour undermining confidence in pensions and saving by an analysis he described as one-sided and highly selective.
The criticism follows that of last week, when Thoresen stated that Ed Miliband’s suggestion of a 4-5% pension charge being normal was absolutely wrong.
Category: ABI News, Insurance News
