Advisers and auto enrolment
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Transcript of Advisers and auto enrolment
Can advisers make money from auto-enrolment?
Henry Tapper
February 2015
The known opportunity
Competence declines
Did anyone ever consider advice?
DWP initial impact assessment June 2012
In 2014 , a typical budget for staging auto-enrolment was £1,500.(source First Actuarial)
We anticipate that this will halve in 2016 and halve again in 2017
What support do bosses want?
When do they want it?
Who do they want it from?
IFAs supporting accountants?
Or is payroll cleaning up?
W
Payroll the new experts?
W
Middleware model under strain
Price crunch
Sage and IRIS who dominate the SME and micro payroll market are able to drive down prices and destroy competition
Packaged compliance services now available at £79 (+VAT) for implementation and £29pm ongoing.
Risk management
Employers concerned about data management
PAPDIS – the common data standard
Payroll is still fractured
But likely to manage going forward
Paying attention to the pension?
The regulatory position
Can advisers be providers?
ConclusionsAnnuity models are risky (vertical integration and middleware)
AE consultancy requires a high level of skill and knowledge
IFAs•are not traditionally skilled at project management •will struggle to compete with payroll on data management•have no source of proprietary whole of market research
Outsourcing to third parties (project management services) is increasingly popular.
But does this leave the adviser with sufficient value?
Is auto-enrolment best avoided or embraced?