The head of pensions and benefits consultancy firm Premier said he feared smaller firms were not doing enough to make sure they will get proper advice on implementation.
He added: “There are many platitudes circulating in the industry about tailoring services for each client and looking at smaller clients’ needs, but schemes and companies should request concrete evidence that this is more than just sales talk.
“Budgeting requires a certainty of costs. Schemes should request fixed fees for things such as actuarial valuations and administration services.”
Mr Couchman said that small and medium-sized enterprises should request references from an adviser’s existing clients, and challenge hidden costs and the suitability of the advice. He said this would help smaller firms to put a proper strategy in place and budget to meet the demands of auto-enrolment.
ADVISER VIEW
Carl Melvin, managing director of Renfrewshire-based Affluent Financial Planning, said: “Smaller firms are not seeking advice earlier enough. This is the big issue. Businesses are unaware of the timeline or how much works needs to be done before the stage-in date.
“SMEs should know that they are affected by auto-enrolment and should be encouraged to seek advice on how they can best meet their obligations. Another thorny issue is that of consultancy charging as firms should have to pay for the advice and benefit of the advisers’ knowledge.”