IFAs will have a key role to play in the stakeholder according to pensions minister Jeff Rooker.
Rooker told Money Marketing he believed IFAs will be essential to provide advice to small companies and scheme members on a group basis.
But Rooker says he will be disappointing many IFAs by ruling out the cost of advice being added to the one per cent annual management charge.
Rooker says: “We do not envisage many people needing advice other than through the decision trees. If they do need additional advice, this cost must be explicit and up front.”