Disclose and Explain asset allocation reporting and performance-based fees and the charge cap: Guidance for trustees of relevant occupational pension schemes

Date published: 07 April 2023

This guidance for trustees and managers of relevant occupational pension schemes provides information on asset allocation reporting,  performance-based fees and the charge cap.


The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations (Northern Ireland) 2023 (“the 2023 Regulations”) introduce new requirements for trustees and managers of certain occupational pension schemes.

For the first scheme year that ends after 1 October 2023, trustees or managers of relevant  occupational pension schemes, are required to disclose their full asset allocations of investments from their default arrangements. Where a relevant scheme is a qualifying collective money purchase scheme , trustees/managers must disclose its full asset allocations of investments as such schemes will not have default arrangements.   This information must be recorded in the annual chair’s statement and is to be published alongside other relevant parts  of the statement on a publicly accessible website.

This guidance is intended to help and assist trustees and managers of relevant occupational pension schemes in the calculation and format of asset allocation disclosures.

From 6 April 2023, the 2023 Regulations also introduce an option for trustees and managers to enter investment arrangements that include performance-based fees, in the knowledge that they will be able to exempt these from their charge cap calculations . The 2023 Regulations attach conditions on what qualifies as a performance-based fee structure for the charge cap exemption.  These are referred to in the 2023 Regulations as ‘specified performance-based’ fees.

This guidance provides support on the broad range of performance-based fee structures that exist and an understanding of the merits of these.

This guidance, issued by the Department for Communities, should be read in tandem with the 2023 Regulations.

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