'Selfish' providers that exit auto-enrolment should be fined - Defaqto

clock

Pension providers that "cream off profits" and withdraw from the auto-enrolment (AE) market just as small and medium-sized employers (SMEs) stage should be fined, Defaqto says.

The independent financial research firm's wealth analyst Richard Hulbert said he expected traditional providers to pull out of the AE market because it was not cost-effective. He said: "We've had some discussion here about ways to get around that and one of the things which has come up a couple of times is if there should be a levy on those providers that exit the market before auto-enrolment is completed. "That way the money could be used to support those smaller providers that are meeting the need because creaming the profits off and leaving is somewhat selfish really." Figures f...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Govt ignores pension tax lock call as petition responses top 18,500

Govt ignores pension tax lock call as petition responses top 18,500

AJ Bell started petition; Govt forced to respond after 10,000 signatures

Jenna Brown
clock 23 October 2025 • 2 min read
How SIPPs and SSASs could help power the UK's energy goals

How SIPPs and SSASs could help power the UK's energy goals

'The role of pensions in supporting renewable energy deserves further consideration'

Caitlin Southall
clock 23 October 2025 • 4 min read
IHT on pensions: A moment in time for the profession to shine

IHT on pensions: A moment in time for the profession to shine

'Bringing pensions into the IHT net marks a structural change in how wealth is transferred'

Andrew Zanelli
clock 21 October 2025 • 4 min read