HC Deb 19 June 1978 vol 952 cc13-4
7. Mr. Knox

asked the Secretary of State for Trade whether he has any plans to allow increases in the maximum permitted level of unit trust management charges.

The Under-Secretary of State for Trade (Mr. Clinton Davis)

I told the Unit Trust Association in March that I was unable to accept its case for increased charges. The association has subsequently made further representations, which are being considered by my Department.

Mr. Knox

Is the Minister aware that unit trust management charges have effectively been frozen at a level set 26 years ago? Is he further aware that charges are now so low that it is becoming increasingly uneconomic for unit trusts to look after small holdings? As a result, some unit trusts are ceasing to cater for the small saver. Does he think that that is a desirable state of affairs?

Mr. Davis

The evidence in my possession does not confirm the allegations that have been made by the hon. Gentleman. The evidence which is currently available overwhelmingly suggests that reasonable pre-tax profits have been made between 1970 and 1976. I do not see that the decision that I have made is in any way unfair. Of course, I shall consider carefully the further representations that have been made.