Advisers accused of commission 'cramming' on GPPs

Laura Miller
clock

Commission-hungry advisers are "inundating" providers with group personal pension (GPP) quotes to make quick cash before 2012 instead of investing in transitioning their business models, national IFA Origen says.

Stephen Greenstreet, managing director of the Aegon-owned distribution business, says national account managers at a number of providers have told him they are being flooded with new GPP business. "But this is only because, on 31 December 2012, this option will disappear because of the removal of commission," he says. Later on this year, the FSA is expected to confirm advice on GPPs should be paid for on a fee basis, even if employees receive no individual advice. Instead, employers will need to arrange to pay an upfront fee to an adviser, or arrange for employee pension funds to b...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

MPs urge one-year delay to farm inheritance tax reforms

MPs urge one-year delay to farm inheritance tax reforms

Cross-party EFRA committee warns proposed IHT changes risk harming vulnerable farmers

Sahar Nazir
clock 16 May 2025 • 2 min read
Behind the advice: The hidden mental health struggles of financial advisers

Behind the advice: The hidden mental health struggles of financial advisers

As Mental Health Awareness Week spotlights wellbeing across industries, advisers speak out

Sahar Nazir
clock 16 May 2025 • 7 min read
IHT on pensions overhaul risks fuelling scams against 'fearful' public

IHT on pensions overhaul risks fuelling scams against 'fearful' public

Claire Trott calls for clarity on 2027 Budget reform that will bring pensions into estate tax scope

Sahar Nazir
clock 16 May 2025 • 3 min read