Scottish Life has U-turned on its decision to continue to process new business on a consultancy charging basis.
Last month, the Government announced plans to ban consultancy charging for all auto-enrolment pension schemes.
Last week, Scottish Life said it will continue to offer consultancy charging, where fees for advice are deducted from employees’ pension pots, ahead of firms’ auto-enrolment staging dates for pipeline schemes and new business.
The provider’s stance was publicly criticised by pensions minister Steve Webb.
Scottish Life managing director Ewan Smith says the provider has now decided not to write new consultancy charging business.
He says: “We have been working with advisers and employers for many months as the market anticipates the challenges that auto enrolment will bring.
“Many employers are keen to ensure that members benefit as early as possible and are putting schemes in place well ahead of the staging date that has been allocated to them.
“For some of these schemes advisers will have negotiated their remuneration on a CC basis.
“We will continue to manage these through this transitional period, and once complete we will not accept CC agreements as the industry moves to a fee based model.”
A Scottish Life spokeswoman says: “We would expect advisers meeting with new employers not to use consultancy charging from now on.”