Today we launch the UK’s first cost transparency dashboard for DB pension schemes.
01 Jun 2017
Available online and via an app, the dashboard will for the first time offer pension scheme trustees and their governance representatives a comprehensive overview of their scheme’s administration and investment costs, the first step towards establishing a true value for money assessment.
Growing regulatory focus
Regulatory scrutiny of cost transparency is growing, currently affecting 33.5m occupational pension scheme members in the UK. As authorities, regulators and scheme representatives all demand increased disclosure of costs from fund and asset managers, our approach is attuned to the reporting challenges faced by both pension schemes on the one side and and investment managers on the other.
The governance tool aims to support informed decision-making across the entire value chain, identify potential for greater cost efficiencies and allow the demonstration of effective governance. It will also allow fund and asset managers to evidence the value they are providing to pension schemes and ensure best possible outcomes are being received.
Bringing clarity to cost transparency
Stewart Bevan, Product Manager, KAS BANK, said “We are committed to offering greater transparency to UK pension schemes.
“As a specialist provider with Dutch heritage, we’ve had first-hand experience in pioneering cost transparency in The Netherlands, a country now recognised as a global leader in cost disclosure. Our experience has shown that greater transparency is highly beneficial for the industry as a whole and will be advantageous for UK trustees by facilitating better operational decision-making which should improve outcomes for the scheme’s members.
“Costs are not inherently bad, but what is unknown cannot be effectively managed. Recognising the true Total Cost of Ownership of a DB scheme is crucial to good governance and the tool will enable better understanding. In turn, pension schemes can have better conversations and prove the true value that they are receiving.”
As the specialist provider of securities services to the UK Pension industry, we are trusted by clients to secure, protect and develop their assets and provide high quality services to pension schemes of all sizes, with a particular focus on small to medium-sized pension schemes in the UK.