Pensions  

Scottish Life U-turn on consultancy charging

The firm has previously maintained it will continue the practice for any firm which had not reached its auto-enrolment staging date, and would continue to sign up firms not staging until 2014 or 2015.

In a statement, Ewan Smith, managing director of Scottish Life said: “For some of these schemes advisers will have negotiated their remuneration on a consultancy charging basis. We will continue to manage these through this transitional period, and once complete we will not accept consultancy charging agreements as the industry moves to a fee based model.

“We have had close dialogue with the DWP over the last few weeks regarding the policy intention and will continue to do so.”

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This week, Mr Webb suggested the company had “not really been listening” to messages about the unsuitability of consultancy charging.

As reported by Financial Adviser sister publication Money Management, Mr Webb attacked an unnamed pension firm, believed to be Scottish Life, for continuing to write business based on consultancy charging despite an intended ban on it.

Speaking at the launch of the Scottish Widows UK Pensions Retirement Report 2013, Mr Webb said: “A provider says ‘stuff you, until it is absolutely illegal, not only will I carry on with pipeline business, I will write new business’.”