IFAs signing up staff to group personal pensions will be all-owed to describe themselves as independent even though a group personal pension provider has already been selected.
The menu proposals say a firm enrolling employees into a GPP will not compromise its independent status if the scope of advice is restricted to advising on joining that scheme only.
Independent firms will be able to continue using their stationery and trading names in GPP situations where the provider has already been selected.
The FSA has exempted group pension arrangements from the disclosure requirements of the menu which means that employee benefit consultants and corporate IFAs, who often charge fees to the employer, will not be required to supply employees with a guide to the cost of their services.
Scottish Life group head of communications Alasdair Buchanan says: “Group pensions have historically tended to operate on their own and it is not surprising that they have been left out of the menu.”
A&B head of pensions Michelle Cracknell says: “This makes sense because the IFA's independence relates to the choice of provider on behalf of the employer.”