True Potential wins AE regulatory backing

True Potential wins AE regulatory backing

True Potential has been approved by The Pensions Regulator (TPR) to provide workplace pensions. 

The wealth management specialist is one of only two group personal pensions providers to receive approval for auto-enrolment and be included in a list on the TPR's website.

Aviva's Company Pension is the other scheme to fall into this category.

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To receive regulatory approval, auto-enrolment providers must be regulated by the Financial Conduct Authority - and where necessary the Prudential Regulatory Authority - for group personal pension provision.

True Potential, which currently provides schemes for 8,000 employers and more than 58,000 employees, said it was approved by the TPR because of its free auto-enrolment technology.

Pension schemes must also be open to all employers, regardless of the anticipated contribution amounts or number of members. 

All pensions charges imposed on members in a default fund must also be within the 1 per cent charge cap, while the providers' independent governance committee or governance advisory arrangement must also have assessed the group personal pensions offered.

Many pension providers have opted not to include small companies among their clientele and only large companies where employees contribute substantial amounts to their pensions. 

But the TPR only lists providers that accept all types of employers, regardless of the number of employees.  

Auto-enrolment of workplace pensions began in 2012 but it is estimated that almost a million (900,000) UK employers have yet to create a workplace pension scheme under the system.