Standard Life is investigating placing a ban on adviser charging in connection with workplace pensions following discussion with the Financial Conduct Authority.
Standard Life said it would take action where advisers are seen to be using adviser charging as a replacement for consultancy charging.
It said the move was necessary to ‘protect the value of using adviser charging where advice is genuinely required'.
In an update on its Adviser Zone website, the firm said it will no longer support adviser charging at scheme set up (it cannot be used to charge people to join), where the charge is in relation to regular premiums, as a regular on-going charge, where there is a direct advice offer proposition or where no individual advice is given.
The insurer said adviser charging can be used after mutual agreement between the employee and adviser, it highlighted that the employer should not be involved in setting or agreeing this charge.
The company said: "Our industry has never seen so much change. In particular the provision and charge for advice has faced significant changes.
"The Retail Distribution Review's ban on commission, the subsequent consultancy charging ban and the Department for Work and Pensions' current consultation on legacy commission are driving how advisers are remunerated.
"Based on these changes, and discussion with the regulator, it is clear to us they do not expect to see widespread use of adviser charging to enrol members into workplace pension schemes, for example employees should not necessarily need a personal recommendation or advice to join."
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