'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

Whitehall Group launches commercial property-focused SIPP

Whitehall Group launches commercial property-focused SIPP

SIPP available through advisers and direct to clients

Jenna Brown
clock 21 May 2024 • 1 min read
Three more organisations sign up to Dashboard Operators Coalition

Three more organisations sign up to Dashboard Operators Coalition

Aviva, Scottish Widows and Mintago join the coalition of potential dashboard operators

Holly Roach
clock 21 May 2024 • 3 min read
HNW individuals call for pension reforms and tax changes

HNW individuals call for pension reforms and tax changes

Almost nine in ten want to see pension reforms, Saltus finds

Isabel Baxter
clock 13 May 2024 • 1 min read