Provider Scottish Life could exit the auto-enrolment pension market in 2015 as the looming ‘capacity crunch' hits.
Speaking at the Personal Finance Society (PFS) conference, Jamie Clark said a substantial amount of employers who leave compliance too late will end up in mass-market schemes.
He said many were reluctant to get the ball rolling on auto-enrolment and the capacity crunch - where providers will be too busy to take on more business - would result in business going to NEST and its rivals the Peoples Pension and NOW: Pensions.
NEST is the only scheme with a legal responsibility not to turn away business.
Clark said: "We are not a charity. We are under no obligation to help the government make this work. We could exit the market tomorrow if we wanted to, in 2015 that might happen.
"A lot of employers will end up in mass market schemes."
Clark outlined the many ways advisers can add value and help employers save cash while still complying with auto-enrolment.
He also said advisers could become more involved with ongoing governance of workplace pension schemes and highlighted the complexity of legal requirements, saying there are 15 sets of regulations, nine sets of guides from The Pensions Regulator and, at his last count, some 28 different categories of worker for employers to define.
"It is all good news for you guys," he added.
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