I recently went to a presentation on the ICB's auto-enrolment offering (Aviva) and have been doing some quick comparisons on the charges with the other well known schemes,
but in practise isn't it up to clients to choose the best solution for them and the bookkeeper (as payroll provider) to just do the extra admin and charge a fair rate for the extra work?
I have heard of IFA's charging very large sums e.g 3k to set up the auto-enrolment pensions - which is surprising when some of the biggest schemes don't actually have a set-up fee.
The issue is that if one advises a client on an offering and when they come to retire they find that they would have been better going with another provider then the person who advised them can be sued for giving less than optimal advice. The redress is to put the client into the position that they would have been in had the best advice been given.
Its basically another PPI in waiting but this time it won't be the banks who are being pursued.
The get out clause is to avoid any advice and simply advise the client that they need to speak with a financial advisor... Do not even advise which advisor as that in itself may be deemed conspiratorial guilt.
I think that you have completely hit the nail on the head. By all means charge extra to process the clients choice but just make sure that its the client that makes the choice.
Hope that I read your post right Simone. Are you saying that the ICB are encouraging bookkeepers to push an Auto Enrolement option for their clients?
I don't think that they've thought that one past any imediate financial gains that may be made from this.
As a side nte I'm pretty sure that PII would not cover people for this sort of advice.
kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Must say I hadn't thought to much about the long-term implications because although you can compare the charges, its impossible for anyone to know which provider will perform best but its food for thought in that it's a serious matter in the long-term for everyone that pays in, not sure I would want that weighing on me.
ICB have an intermediary company in place between themselves and Aviva who are an IFA who would be responsible for any future issues at least that's how I understood it, so the bookkeeper can say to the client feel free to choose whichever scheme but here's the one I offer. It's on their website but you might need to log-in to see more.
ACCA and ICAEW guidance is to tell the client to find an advisor. They are not pushing a recomended solution and indeed there have been a few discussions about the risks assoociated with even advising whether to advise the client on a specific advisor let alone an actual pension.
I can't see anything on the AAT site but maybe someone else could fill out further details for them.
Same with IAB... Although I always find it difficult to find stuff on their site that is not training related. Suspect that such things may be hidden within their members area.
I had a look on the ICB site and found it straight away so I don't think that it's my search criteria thats messed up. It's just something that the ICB have run with but others right up to the top level are being a lot more cautious about it, not least because of the PII issue.
Overall I fear that the ICB may be running with scissors on this one and would perhaps be wiser to offer practicing members similar advice to the higher bodies.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Must say I hadn't thought to much about the long-term implications because although you can compare the charges, its impossible for anyone to know which provider will perform best but its food for thought in that it's a serious matter in the long-term for everyone that pays in, not sure I would want that weighing on me.
ICB have an intermediary company in place between themselves and Aviva who are an IFA who would be responsible for any future issues at least that's how I understood it, so the bookkeeper can say to the client feel free to choose whichever scheme but here's the one I offer. It's on their website but you might need to log-in to see more.
So is it just ICB that are doing this then?
An IFA or an FA?????
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I got the impression that it was IFA - because they mentioned that there are certain circumstances when its ok to recommend the one product, something about compliance and reporting.
Anyway back to putting my website together
-- Edited by Simone on Thursday 29th of October 2015 09:29:36 AM
