RDR could block pension advice to SMEs

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The RDR poses a threat to the stream of communication between IFAs, small business owners and their employees on pension schemes, an employee benefits consultant warns.

Neil Gough, client services director at Creative Benefit Solutions, says the RDR will remove the flexibility small business owners currently enjoy when paying for pension advice, either through commission, a fee or a combination of both. "This will mean that either employers pay fees for the advisers' services, to them as employers and/or to the pension scheme members, or the adviser costs are met by deduction from the contributions paid or the member's fund itself," Gough says. He adds: "The risk resulting from this is employers will set up schemes without advice being provided to th...

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