Tom McPhail: Why IFAs could be the first casualties of a pensions fee cap

Advisers could be early casualties of the government's plans to cap charges on auto-enrolment schemes. At the moment, the Department for Work and Pensions is still consulting on a range of possible courses of action. Nothing is set in stone, but IFAs could find themselves sacrificed by employers and pension scheme providers if costs are squeezed by a price cap. Cost cutting Some elements of pension provision are essential. Fund management is a given, though it might be that active managers also lose out to passive solutions as ways are sought to cut costs. The establishment of th...