Consultancy charging ban 'less dramatic than it sounds'

Jenna Towler
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The move to ban consultancy charging is "less dramatic than it sounds" as most of the charges that can end up with the employer's adviser remain unaffected, according to a consultant.

As part of the latest Pensions Bill advisers will be banned from taking consultancy charging payments on auto-enrolment schemes. Workplace pension consultant Towers Watson said consultancy charges were, in fact, just the most transparent of a number of charges levied by advisers and therefore the "easiest to target". Senior consultant James Colegrave said: "In the past, some pension providers felt they needed to pay commission to advisers to win business from employers who did not want to pay for advice themselves. Charges paid by members would be lower today if providers did not need...

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