The government may extend its ban on consultancy charging in auto-enrolment (AE) schemes to vehicles set up before it announced the practice would be outlawed.
The Department for Work and Pensions (DWP) announced on 10 May that it would ban consultancy charging in AE schemes on the grounds that this does not represent value for money for members.
At the time of the original announcement it was believed the ban would only apply to business struck after 10 May, as some providers had already agreed but not completed consultancy charging deals before then.
However, the government announced on Friday that it may outlaw consultancy charging business yet to transact but already agreed before 10 May as well. It will consult on the matter in the autumn.
Pensions minister Steve Webb said: "My job is to make sure people get better pensions. So when people put hard-earned cash into a pension I am determined to make sure it doesn't get gobbled up by charges. This ban will make the system fairer for anyone being automatically enrolled into a workplace pension."
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