ABI: Personal accounts charging structure must be fair and sustainable says the ABI

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Wednesday, 16, Jul 2008 12:00

Responding to the publication today of the Personal Accounts Delivery Authority (PADA) summary of possible charging structures for personal accounts, Helen White, the ABI’s Assistant Director of Retirement Policy, said:

“Fairness and sustainability must be the basis for setting the charging structure for personal accounts. We favour a combined annual management charge and contribution charge, as this will not punish savers with dormant pension accounts, or those who have taken a contributions holiday. Combined charges are widely used in mortgages, mobile phone contracts and bank accounts. They will allow for the for the effective management of the significant set up costs of personal accounts.”

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