Nest is urging advisers to consider helping small and medium-sized businesses to set up the Government-backed scheme free of charge ahead of their automatic enrolment staging date.
Nest is engaging with advisers ahead of an anticipated “capacity crunch” between April and July 2014 when more than 12,000 employers are due to begin auto-enrolment.
Nest managing director of customer and proposition Graham Vidler is encouraging advisers to help SMEs set up and run the scheme. He says advisers could charge an upfront fee for the service.
If an employer is unwilling to pay up front, Vidler says advisers could offer to install Nest for free and then provide other advice services which the employer would pay for.
He says: “We think there is a big opportunity for advisers to install and run Nest for small and medium-sized businesses.
“We are seeing a real interest in the market for this ‘delegated access’ service and we plan to pilot some training with advisers to explain how this can be done.
“There are various ways advisers could charge for a service like this.
“For example, they could charge a fee per service or operate as a ‘loss leader’, either charging a lower fee or installing Nest for free and then providing a wider range of advice services to that employer in the future.”
Syndaxi Chartered Financial Planners managing director Robert Reid says: “I am totally against the idea of operating as a loss leader.
“We should be charging people up front for what we do.”