Personal Pension  

Auto-enrolment commission ban confirmed for April

Auto-enrolment commission ban confirmed for April

The government has confirmed the auto-enrolment commission ban on occupational schemes will come into force for new arrangements from April 2016.

This ban applies to all qualifying auto-enrolment schemes and will be monitored by The Pensions Regulator.

In a document published by the Department for Work & Pensions, in response to its consultation on banning member-borne commission, the government stated the ban relates to ‘advice or a service’.

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The DWP added there may be things that the service provider provides which do not fall within that term and are more in the nature of the administration of the scheme, for example, self-service tools or the provision of generic information.

The government will consult later in 2016 on regulations affecting commission deals already in place.

In late January 2016, the government released its second consultation on this topic.

At that time, the paper released formed a response to its October consultation on banning consultancy charging in workplace pension schemes, ahead of the sunset clause on all such payments coming into force in April.

The government was looking for responses from third-party administrators, independent financial advisers, trustees and managers of schemes by 9 February on whether the draft regulations proposed meet the policy decisions set out.

The first consultation on the topic was released in October.

ruth.gillbe@ft.com