View more on these topics

Steve Webb admits Govt should have banned consultancy charging earlier

Steve-Webb-Attr-David-Spender-700x450.jpg

Pensions minister Steve Webb says the Government should have acted to ban consultancy charging two years ago and admitted it was late to clampdown on charges ahead of auto-enrolment.

Speaking at a Standard Life fringe event on pensions at the Liberal Democrat conference in Glasgow this week, Webb said he was “gobsmacked” at the lack of a quality standard on schemes that were set for auto-enrolment when he came to office in 2010.

Last week, the Government banned consultancy charging and said it was considering a retrospective ban on existing schemes.

Asked by Money Marketing whether he was planning any further retrospective action, Webb said: “We do not want someone auto-enrolled into a scheme where a huge slug of money goes on charges. We are still consulting on exactly how we deliver it and will consult on a cap on charges in the autumn. It would mean you can choose an auto-enrolment scheme but can only charge such a per cent. We need to move fast on it.

“Should we have done this two years ago? Yes, I was gobsmacked when I took office in 2010 to discover there were almost no quality standards on auto-enrolment schemes.”

Webb added consultancy charging was not in the “spirit of auto-enrolment”.

He said: “Taking money out of people’s pots did not seem right to us. We wanted to make consultancy charging transparent so firms can absolutely pay for advice if they have the money and want to do so but it is a direct transaction between employer and consultant.

”We think it will improve the reputation of the sector. Some providers were not doing it at all, others stopped as soon as we started looking at it and a few kicked and screamed until we stopped them.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com