Employee benefits firm Creative Auto Enrolment has launched an automatic enrolment compliance service for advisers ahead of the anticipated “capacity crunch” in 2014.
The firm, which is a subsidiary of Creative Benefits, charges employers an initial £6,500 to set a business up for auto-enrolment, with a 10 per cent discount if they sign up within 30 days of receiving a quote and have at least two months until their staging date.
The fee rises to £7,500 if the firm is within two months of staging and to £9,000 if it is within one month of staging.
It then charges £1.50 per employee per month to provide ongoing compliance support.
Advisers who refer corporate clients to the service will receive an “introducer fee” of £1,000 per employer. Advisers have the option to pass this fee on to their client through a reduction in Creative Auto Enrolment’s initial charge.
Creative Auto Enrolment managing director David White says: “There is going to be a massive capacity crunch next year and if advisers do not offer a service on this, the danger is they will go somewhere else or fail to comply with the legislation and get fined.
“Either of those two outcomes threaten an adviser’s relationship with their clients.”
Syndaxi Chartered Financial Planners managing director Robert Reid says: “The problem with compliance services like this is they do not take on any liability if it goes wrong.”