The Department for Work and Pensions (DWP) has clarified the way in which consultants are allowed to charge for setting up group personal pensions for auto-enrolment.
An update from the Financial Services Authority issued last week said that consultancy charges could not be taken from contributions when employers were paying only the minimum contribution, as contributions must meet the statutory minimum net of charges. From this wording, some consultants were concerned they would not be able to take fees via adviser charging at all, leaving them with just the option of up-front payment from the employer. However, the DWP has confirmed that although consultancy charges cannot be taken from contributions if they reduce the value of contributions to b...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
