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Aon calls on IFA networks to scrap select pension panels

Aon Consulting is urging IFA networks to follow its lead and abandon select panels for stakeholder pensions or risk misleading consumers.

Aon, one of the UK&#39s biggest employee benefits consultant
s, recently issued a statement on its plans to look at the whole market before recommending a life office&#39s stakeholder, arguing that small panels are not in the interests of employers or employees.

Aon believes considering stakeholder propositions from across the complete market is the only way to find solu-tions to meet individual cli-ents&#39 needs.

The company is “very concerned” at the prospect of select stakeholder panels, saying that, although they make life easier for advisers, enabling them to maximise their commission earnings, they may not be in the best interests of stakeholder scheme members.

Aon is hoping its public statement on panels will set a precedent for IFA networks fearing stakeholder panels create a multi-tie situation which contravenes polarisation regulations and could mislead the public.

Aon&#39s client base consists of a range of clients from small companies to multinational corporations.

Director of research Donald Duval says: “It would be desirable if this sets a precedent for IFA networks to follow. Stakeholder has created downward pressure on commission, leading some IFAs to use panels.

“If we are going down that route, the law needs to be changed to make IFAs dis-close their stakeholder panel or risk misleading consum-ers that they are selecting from the whole market when they are only looking at a narrow panel.”

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