'Selfish' providers that exit auto-enrolment should be fined - Defaqto

clock

Pension providers that "cream off profits" and withdraw from the auto-enrolment (AE) market just as small and medium-sized employers (SMEs) stage should be fined, Defaqto says.

The independent financial research firm's wealth analyst Richard Hulbert said he expected traditional providers to pull out of the AE market because it was not cost-effective. He said: "We've had some discussion here about ways to get around that and one of the things which has come up a couple of times is if there should be a levy on those providers that exit the market before auto-enrolment is completed. "That way the money could be used to support those smaller providers that are meeting the need because creaming the profits off and leaving is somewhat selfish really." Figures f...

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 Pensions

Pensions campaigner and former WPC chair Frank Field dies aged 81

Pensions campaigner and former WPC chair Frank Field dies aged 81

Field was a former Work and Pensions Committee chair and a welfare champion

Professional Pensions
clock 24 April 2024 • 5 min read
Crucial advice issue: Death benefits detail advisers need to know

Crucial advice issue: Death benefits detail advisers need to know

Important differences from previous regime

Andrew Tully
clock 05 April 2024 • 4 min read
British Steel a stark reminder of obligations around client files

British Steel a stark reminder of obligations around client files

Lawyer Philippa Hann reflects on her work around the pensions case

Hope Coumbe
clock 27 March 2024 • 2 min read