In today’s RDR paper, the FSA says: “A number of respondents observed that it would be possible for market participants to avoid any new rules we might make for group personal pensions by turning instead to market offerings based on occupational pension schemes.
“It was also suggested that full protection might only be achieved if advice to employers about GPPs was regulated by the FSA.
“We agree that there would be potential for firms to select the occupational pension route in order to avoid our regime.
“To address this, we have looked at the possibility of banning commission on investment products linked to occupational pension schemes used as alternatives to GPPs and bring forward proposals to this effect in this consultation paper.
“We do not feel that it is necessary at this stage to investigate extending our regulatory scope but will revisit this if the market should develop along occupational scheme lines.”