Finance
Britain's financial regulator to review pension fees cap in pro-growth reforms
Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
The FCA plans to review pension fees cap to boost growth, encouraging investment in higher-risk assets and easing stock exchange listings.
By Phoebe Seers
LONDON, Dec 10 (Reuters) - Britain's financial regulator pledged a series of pro-growth reforms on Wednesday, including possible changes to fee caps for pension schemes, as part of a broader push to channel some retirement savings into higher-risk, potentially higher-reward assets.
In a letter to Prime Minister Keir Starmer, Financial Conduct Authority CEO Nikhil Rathi said the watchdog would also seek to speed up applications by companies to list on the London Stock Exchange and cut red tape for mortgage approvals.
The Labour government has pressed regulators to ease rules and boost growth since winning power last year. The FCA and the Bank of England’s Prudential Regulation Authority are subject to a secondary objective to promote growth and competitiveness.
The FCA said it would review the cap on pension fees to aim to ensure consumers are not deterred from certain investments because of higher performance charges, which are typically payable on specified returns.
Ministers want pension funds to allocate more to unlisted and early-stage businesses, infrastructure projects and green energy, which usually require greater research and expertise, pushing up costs for providers.
The FCA is also proposing to scrap a seven-day research waiting period for initial public offerings.
(Reporting by Phoebe Seers. Editing by Iain Withers and Mark Potter)
A pension scheme is a retirement plan that provides a regular income to individuals after they retire, funded by contributions made during their working life.
The London Stock Exchange is a global stock exchange located in London, where shares of publicly traded companies are bought and sold.
Investment portfolios are collections of financial assets, such as stocks, bonds, and other securities, managed to achieve specific investment goals.
Retirement services include financial products and planning services designed to help individuals save and manage their finances for retirement.
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