Advisers are being warned to commit to the auto-enrolment market now or risk missing an opportunity.
Speaking at the launch of the Auto-Enrolment Advisory Group director Matthew Walne said auto-enrolment could prove an important growth area for advisory businesses.
"I know that many advisers do not want to touch this business with a barge pole but they are losing clients hand over fist," he said. "If you are not in this area now then the opportunity may pass you by. Employers don't want to be pensions experts they want someone to take the administrative burden away. They want to know the data is being managed and employees are being communicated with."
The Auto-Enrolment Advisory Group was launched to help advisers develop their auto-enrolment proposition. http://www.ifaonline.co.uk/retirement-planner/feature/2322831/helping-advisers-build-auto-enrolment-business
Getting the proposition right is all important in developing a good long-term income stream according to co-director Chris Daems.
"You can choose to build your own proposition or else plug into middleware but the key thing is to get your proposition right," he said. "For instance what are you charging on an ongoing basis? Many advisers are not doing this and this is a mistake as there is a lot of work involved in managing the data over time."
Over the coming six months 38,000 employers will reach their staging dates. Jargonfree Benefits CEO Steve Bee believes this could be a fertile market for those who act quickly.
"Don't assume the middle sized companies are being helped out by the bigger employee benefit consultancies because many are not," he said. "Advisers need to work out what they are going to say to employers should they ask you about auto-enrolment and if you aren't going to help them how are you going to tell them."
Walne said the group is currently working on a proposition to help advisers serve the micro-employer market.
EIS and Seed EIS sectors
'Truly making a difference'
Avoidance, evasion and non-compliance
From 6 April 2019