The death of active member discounts

clock

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 ...

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 uncategorised

Scotland Investment Roadshow 2024: Last chance to join PA in Edinburgh and Glasgow

Scotland Investment Roadshow 2024: Last chance to join PA in Edinburgh and Glasgow

The Scotland Investment Roadshow kicks off next week

Professional Adviser
clock 18 September 2024 • 2 min read

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •