Aegon latest to U-turn on consultancy charging

The head of regulatory strategy confirmed the change after Scottish Life was forced into a U-turn over consultancy charging on new business.

Last week, pensions minster Steve Webb attacked an unnamed provider - believed to be Scottish Life - for continuing the practice for firms yet to reach auto-enrolment staging dates in the next two years.

A few days later, Scottish Life announced it was doing a U-turn on consultancy charging following Mr Webb’s comments.

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According to Mr Cameron, the pension minister’s hardening stance on consultancy charging has now also made Aegon “review what it has in the pipeline”.

He added: “We have changed our position as a result of discussions with the department for work and pensions and prompted by Mr Webb’s comments recently. We asked for urgent clarity over the possible consequences of those comments.

“It is now clear that the DWP will frown on certain interpretations of the current rules. We do not want employers or advisers to regret decisions taken now so any business not confirmed by May 10th will be reviewed to make sure we reflect the new situation.”

Mr Cameron said it was “a small number” of schemes that would have proceeded with consultancy charging as before, but that the company “would be looking at each of these in turn”.