Scottish Life's Jamie Clark explains why the case against AMDs is getting stronger the nearer we get to auto-enrolment.
It seems inevitable to me that auto-enrolment will kill off active member discounts (AMDs). No one is explicitly banning them and, with the exception of AMD models that result in substantial annual management charge increases designed to support higher initial commission, no-one is saying they are inherently bad. But I put it to you that, like it or not, they are already on trial, and the case against them is getting stronger. Exhibit A: DWP Qualifying Workplace Pension Schemes default fund guidance “The default option should be appropriately and competitively priced for active and ...
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