The Department of Work and Pensions (DWP) has confirmed that it will exempt specified performance fees from the Charge Cap in its response to its consultation on ‘Broadening the investment opportunities of defined contribution schemes’. The new draft regulations and guidance will also require schemes to disclose and explain their policies on illiquid investment as well as their full asset allocations. The final draft regulations to exempt performance fees are expected to be approved by Parliament and enter into force from April 2023.

For more information, please contact Guillermo Pérez Molina, Private Credit Associate.