Auto-enrolment an opportunity for IFAs: Steve Bee
Auto-enrolment could be an opportunity for advisers to “re-engineer” their business model according to pensions guru Steve Bee.
Speaking today (Monday 21) at the PFS 2012 Auto-enrolment conference in London, Mr Bee, the founder of Jargon Free Benefits, said: “Most employers will find auto-enrolment a bit of a shock”.
He said the process would be complicated for individuals, and equally complicated for small and medium-sized businesses who don’t have the resources regarding compliance to track employees who may or may not be eligible for auto-enrolment pension schemes, and enrol them onto pension plans.
He added: “This could be a chance for advisers to re-engineer their business models post-RDR, and sell HR services into businesses. If the adviser industry don't help employers with this, who will?
“Employers will have to keep their staff up-to-date with ever changing pensions legislation, and will have to keep up to six years’ worth of records on files for the pensions regulator. Many will be able to do this but others will not have the resources.
“I would use the VAT analogy. Most firms can do VAT returns but, in order to save time and money, use accountants. The same could be said about complying with auto-enrolment, and it affects many more firms than VAT. This could be a good opportunity for the IFA industry.”