Auto-enrolment lawsuits beckon for advisers

The spokesman said: “Members bear the risks of DC schemes performing poorly. Therefore it is vital that employers choose pension arrangements for their workers that are designed and managed in members’ interests.

“We urge all small employers preparing for AE to choose a high-quality large scheme such as a master trust or a group personal pension plan.

Article continues after advert

“We have published a list of schemes that have attained independent master trust assurance and that accept all types of employers. Employers who use these schemes can be confident that they are well run.”

Adviser view

Peter Chadborn, director of Essex-based Plan Money, said: “There is an obligation on employers to make pension provision where there was before and if there will be a risk of disgruntled employees it will be someone who hasn’t got as much money as they thought and is looking for someone to blame.

“I have never known an employee to question the selection of a provider, however there is a greater obligation under auto-enrolment so I think the risks to the employer and the associated adviser will be more in the way of how the options were communicated.”