Advisers must team up with accountants to launch workplace focused businesses in order to survive a ‘perfect storm’ of regulatory change.
Speaking to the Personal Finance Society, Steve Bee (pictured) managing pensions partner of Paradigm Pensions, said accountancy firms are looking for ways to survive a regulatory reform called real time information (RTI) which would take away a lot of the end of year work on which they rely.
He said RTI would coincide with the retail distribution review (RDR) for advisers which will make fees charged for workplace advice seem like an extra charge to members on their pension scheme.
‘The key to success is the tying up of advice firms and accountants,’ he said. ‘There is no point reaching employers who have already been reached by accountants because the relationships already exist.’
‘Advisers need to join up with accountants and build new businesses based around workplace pensions. You will see small accountancies running compliance bureau services, they have the data and can double it very easily. The problem with workplace benefits is they are not licensed to deal with regulated products.’