RDR: GPP consultancy charging 'fraught with problems'

The head of pensions policy at Standard Life says the industry will need to hammer out a workable solution quickly in order for the plan to be successful. The FSA has suggested introducing ‘consultancy charging' to the GPP market, while banning commission, meaning employers would pay a fee themselves, or have a negotiated deduction made from their employees' pension contributions, to pay for advice. However, Lawson says the regulator has not properly thought through how this would work in practice. If advice is to be paid for from employee funds, Lawson believes it will be difficul...