The pensions minister Ros Altmann is urging stakeholders in the pensions industry including financial advisers to respond to a consultation exploring the best way to ban commission payments to advisers in pension schemes used for auto-enrolment (AE).
Baroness Altmann described the upcoming ban - due to arrive in April next year - as the "next natural step" in attempts to protect savers following the charge cap on AE default funds. The government announced in March last year that it intended to ban member-borne commission payments to advisers from qualifying AE schemes from April 2016. It follows a recommendation by the Office of Fair Trading two years ago that schemes with in-built commission should not be used for auto-enrolment because it was concerned members could pay without realising. It added commission presented a barri...
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