Personal Pension  

DWP consults on pension scheme adviser commission ban

Members will have to make an active choice and advisers will not be able to use a “tick box format” for members to opt-in or out of advice or services.

The DWP stated that it believes members should have the opportunity to opt-in to adviser services and welcomed views on how this should be paid for. “For example, should payment be made via a fixed fee against the members’ funds or contributions, or should it also include the facility to recover the fee by way of a percentage charge against the members’ funds or contributions,” the paper asked.

Article continues after advert

In terms of further areas for consultation, the document noted that none of the options will place a legal duty or requirement on advisers.

“Nonetheless, the government is interested to understand the level and scale of the impact on advisers from the options presented in this consultation, with particular regard to the ban on existing member-borne commission arrangements in occupational schemes used for automatic enrolment.”

This consultation closes at 27 November.

peter.walker@ft.com