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...
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