Henry Tapper, founder of auto-enrolment service Pensions PlayPen and director at pensions consultancy First Actuarial, said he was pleased to see the government take a tough stance on these issues.
He said already diminished DC pots should not be stretched further by adding extra complications such as numerous providers or product options as could be accessed via Sipps.
Mr Tapper said: “It pleases me the civil service are being tough in this because there’s a lot of cost that gets borne by everybody in the scheme.
“I don’t think there is a good business case for giving money to Sipps let alone the tripartite arrangement they had in place before.”
Mr Tapper said members would always be given the choice to transfer out and invest their money in Sipps themselves at their own expense.
“In terms of priorities, employers have to put contributions and costs first and ‘frills’ second, he said.