PracticeConsultingPensions advice at extra cost.

Pensions advice at extra cost.

The government has given in to pressure to allow accountants and other financial advisers acting for stakeholder pensions schemes to charge extra for individually tailored pensions advice. But Social Security secretary Alastair Darling announced in parliament this week that the 1% limit would remain for providing information and general advice and other operating costs. He also exempted employers with fewer than five staff from having to run an employee pension scheme and employers who offer a group personal pension to which they contribute at least 3% of employees’ earnings – with the exemptions to be reviewed in three years time. Darling said schemes may provide individual financial advice within the 1% limit if they wish – but would be allowed to charge a separate fee to cover additional, optional services. The Financial Services Authority will be responsible for the rules surrounding the promotion and marketing of schemes, including the provision of advice for the pensions, which the government plans to make publicly available from April next year. In a written reply to a question in the Commons, Darling said schemes would be barred from making additional charges for transfers into stakeholder pensions or to other schemes.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer