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Auto-enrolment could be the next big opportunity, but are wealth firms ready?
by James Phillipps on Aug 29, 2013 at 10:29
Employee benefits director Julia Ridger says a significant number of companies have been slow to act when they should have been planning at least 12 months in advance of their staging date – the point at which they have to start auto-enrolling their staff.
‘We are looking at small and medium-sized firms and we want to grab those with staging dates at the beginning to the middle of next year,’ she said. ‘Those with under 500 employees have to start auto-enrolling staff in the New Year, so it does not leave people with much time and the market will get to full capacity.’
Smith & Williamson is running a number of seminars over the summer to help companies prepare for the process, including the level of contribution they will look to pay and whether their payrolls and internal systems are sufficiently robust to be able to cope with the new demands.
IFAs are also seeing considerable opportunities, with network Tenet launching an employee benefits arm ahead of the introduction of the legislation last year.
‘It’s a massive opportunity for our sector,’ said Mike O’Brien, Tenet's group brands director. ‘Yet there is clearly a high degree of unpreparedness, evidenced by the fact that 8% of those in the “large employer” category are already under investigation for alleged non-compliance.’
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