Exclusive research: PI finds growing fears over auto-enrolment advice gap
As more companies reach their staging dates, the advice market is becoming flooded, and there is a risk it could reach capacity.
Have the cracks started to show?
More than a third of respondents thought businesses were encountering difficulties when seeking advice on auto-enrolment (See right), and 14% had struggled to find a provider to take on their autoenrolment business (see right).
“Certain employee cohorts can be challenging from a commercial viability perspective, meaning not all bundled providers can take on those cohorts at acceptable charging levels,” says Paul Bucksey, head of DC business development and client relations at BlackRock.
Where it is an issue is for the small firms, who haven’t had contact with a corporate adviser before
Accessing advice may depend on the size of the scheme.
“It isn’t an issue for the medium and large firms. Where it is an issue is for the small firms, who haven’t had contact with a corporate adviser before, and perhaps don’t have the budget to pay the fees associated with advice,” says Laith Khalaf, head of corporate research of Hargreaves Lansdown.