Almost two months after the introduction of stakeholder Allied Dunbar has yet to introduce its versi...
Almost two months after the introduction of stakeholder Allied Dunbar has yet to introduce its version of the low cost pension product and only now is saying the product will in place by October.
A spokeswoman for Allied Dunbar confirmed its stakeholder-to-be is being actively marketed and sold to employers even though it fails to meet the requirements of what is technically a stakeholder pension.
At present, Allied's product calculates the annual management charge on a monthly basis at present as opposed to the required daily basis. It is also unable to accept transfers into the scheme or handle contracted-out contributions - both of which are necessary parts of a stakeholder scheme.
Allied say all elements will be corrected by October in time to comply with OPRA regulations, which state that any firm with five or more employees that doesn't have a stakeholder in place by 8 October could be liable to a penalty of £50,000.
Although OPRA has indicated a lenient approach in dealing with firms with mitigating circumstances and fail to have a scheme in place by Autumn, Allied is in danger of missing a sizeable chunk of the pension market, as firms race to set up a stakeholder scheme.
The group stakeholder scheme - which is to replace Allied's existing group retirement plan - can be administered entirely over the internet by IFAs, as each employer and employee is given a PIN number to enable access to their account.
Allied Dunbar marketing director Ian Price said: "We have deliberately held back from an early commitment as the market has been continuously changing. The decision to delay entry to the market has provided us with the opportunity to better assess the market and to provide a sounder stakeholder solution."
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