Pensions minister Stephen Timms has left the door open for IFAs selling stakeholder despite capping charges at 1 per cent per annum.
Timms says saying clients in existing pension schemes must get advice before they can move into stakeholders opening a clear market up for IFAs.
And he admits it could be paid for by an additional charge bolt on of up to 0.5 per cent of fund value per year or a by a separate fee.
Speaking to Money Marketing the pensions minister said that in circumstances where potential customers are already in a personal pension or occupational scheme, additional advice must be given.
Timms says: " In think in most circumstances the correct advice for occupational schemes is to stay where you are and a lot of people in existing personal pensions may be better off not moving as they will already have paid an upfront charge. These people will need more advice.