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FSB slams ‘excessive’ auto-enrolment fines

The Federation of Small Businesses has criticised the “excessive” fines set to be levied on companies that fail to comply with automatic-enrolment rules.

Speaking at TheCityUK’s pensions conference last week, FSB policy chairman Mike Cherry said the initial non-compliance fine of £400 is excessive.

He said: “We are concerned that employers will be penalised for minor errors as opposed to deliberate non-compliance. We have always advocated that a light-touch approach would have been far more appropriate.

“For example, if there must be a fixed-penalty notice for a first mistake, the level that is currently being introduced of £400 seems somewhat excessive. The figure should be much lower.”

A spokesman for The Pensions Regulator says employers will receive several warnings before any fine is issued. He says: “We are working hard to help all employers comply with their new duties and communicating directly with them 12 months before their staging arrives.

“Our focus will be on persistent or intentional non-compliance. The regulator will issue fines to ensure employees receive the pension contributions they are due in law. Before applying a fine we will notify the employer they are in breach of the law, providing them with the opportunity to rectify the breach.”


AWD picks Cofunds for mass affluent clients

National IFA AWD Chase de Vere has appointed Cofunds as its main platform provider for mass affluent clients. The firm says the move comes after nine months of due diligence and will see the firm’s “enhanced segment” of clients, with investable assets of between £50,000 and £375,000, supported by Cofunds. AWD already has over £1bn […]

Skandia swaps asset managers on US fund

Skandia Investment Group has awarded a £108.6m mandate to US asset manager 300 North Capital for its Skandia US capital growth fund. The move has seen Marsico Capital Management replaced as asset manager on the fund. According to Skandia, the awarding of the mandate will give the fund exposure to growth companies regardless of market […]


Redress scheme could force 30% of Arch cru firms to default

The FSA says up to 30 per cent of firms that recommended clients to invest in Arch cru could default as a result of the regulator’s proposed consumer redress scheme, with a Financial Services Compensation Scheme bill of over £30m. The regulator published plans this morning to introduce a consumer redress scheme for investors who […]


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  1. Isn’t this to be a similar disaster to Stakeholder? Legislation, enforcement, a lot of work and in future years complaints about poor returns and high charges – you couldn’t make it up.

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