GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
UK watchdog proposes greater private market investment flexibility for pension funds - Finance news and analysis from Global Banking & Finance Review
Finance

UK watchdog proposes greater private market investment flexibility for pension funds

Published by Global Banking & Finance Review

Posted on November 12, 2026

1 min read

· Last updated: November 12, 2026

Add as preferred source on Google

UK Watchdog Proposes New Flexibility for Pension Funds in Private Markets

Overview of Proposed Changes to Pension Fund Investment Rules

Nov 12 (Reuters) - Britain's finance watchdog on Thursday proposed giving workplace pension providers greater flexibility to invest in private markets by excluding certain performance-linked fees from the charge cap for default pension funds.

Key Proposals and Safeguards

Transparency and Fee Allocation

• The proposals include safeguards on transparency, fee allocation and valuation of private assets, the Financial Conduct Authority said

Access to Private Market Investments

• It added that the move could widen access to private market investments such as private equity, venture capital and private credit

Justification for Higher Charges

• The regulator said higher charges stemming from investments in private markets must be justified by additional value delivered to savers

Consultation and Next Steps

Feedback Period and Implementation Timeline

Deadline for Feedback

• The regulator is seeking feedback on the proposals until January 14, 2027, and expects to publish final rules in summer 2027​

(Reporting by Ankita Bora in Bengaluru; Editing by Shinjini Ganguli)

Key Takeaways

  • FCA proposes exempting certain performance‑linked fees from the 0.75% charge cap to enable access to private equity, venture capital and private credit, with strict safeguards on transparency, fee allocation and asset valuation (press.news)
  • Any higher charges from private market investments must demonstrably deliver additional value to savers; this flexibility reflects prior treatment for trust‑based schemes enacted in 2023 (press.news)
  • The consultation is open until 14 January 2027, with final rules anticipated in summer 2027; this aligns FCA‑regulated schemes with existing arrangements for trust‑based pensions (press.news)

References

Frequently Asked Questions

What changes is the UK finance watchdog proposing for pension funds?
The UK finance watchdog proposes giving pension providers more flexibility to invest in private markets by excluding certain performance-linked fees from the charge cap.
What types of private market investments could pension funds access?
The proposals could widen access to private equity, venture capital, and private credit investments for pension funds.
How will the new proposals protect savers?
Safeguards on transparency, fee allocation, and valuation of private assets are included to protect savers.
What is the timeline for feedback and implementation of these proposals?
Feedback is open until January 14, 2027, with final rules expected to be published in summer 2027.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category