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DWP requests details of post-RDR consultancy charging deals

Steve Webb 480 LibDems DWP

The Department for Work and Pensions has written to providers requesting detailed information on post-RDR consultancy charging deals.

The future of consultancy charging was thrown into doubt in November when pensions minister Steve Webb wrote to the Association of British Insurers saying the DWP was launching an “urgent review” into the charging method and was considering banning it altogether.

In an email to providers, seen by Money Marketing, the DWP says: “Now that RDR has been in force for six weeks, we understand that providers are beginning to receive requests from advisers for quotes for schemes which include consultancy charging.

“This information will be crucial to our review and we hope that you will be able and willing to provide anonymised data from the requests that you have received so far.”

The DWP has asked for information about the type and size of employers which plan to use a consultancy charge, whether the scheme is being used for automatic enrolment, the average earnings of the employees and contribution rates.

It has also requested specific details on the structure of both initial and ongoing consultancy charges.

Aegon regulatory strategy director Steven Cameron says: “This is a positive sign that the DWP wants to understand how the market is developing.

“We remain firmly for consultancy charging provided it is used responsibly.”

Syndaxi Chartered Financial Planners managing director Robert Reid says: “Advisers urgently need clarity on the future of consultancy charging.”


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