Advisers slow to address auto enrolment, says Optimus
Many advisers have yet to build an auto enrolment proposition and prepare a back office process ready for this summer’s big step up in company staging dates, according to financial planning consultancy Optimus.
Optimus says that the window of opportunity is closing quickly, so advisers need a solution or will miss the boat.
Larger employers have staged; the massive sub 100 employees wave of companies starts from 1 May 2014. Many of these employers have no existing adviser relationship, making them prime prospects. This employer group are a perfect match for local advisers to serve with a well-considered scalable, competitively priced, end to end proposition. Every adviser has business owners on their client list who will expect help or be forced to look elsewhere.
Tim Hines, business and strategy consultant at Optimus Consulting, says: “Advisers have been deluged with information and part solutions from traditional pensions providers and promoters of middleware, each one weighting the message to suit their own agenda.
“We believe that the vast majority of employers just want a straight forward no frills solution that doesn’t inflate their costs more than is absolutely necessary.”
Problems with solutions now being marketed include layered additional ongoing costs of up to GBP3.50 per month per employee above the required employer contribution, and the likelihood that major insurance providers will cherry pick the high value prospects, waste valuable time deliberating and then reject the low value majority of the workforce.
Optimus has built an off the shelf white label solution that gives advisers a complete ready to use and simple process to provide employers with a structured installation process. There are templates for every stage: the initial approach letter, enquiry report, fees and invoicing process, suitability report, control sheet, right through to scheme registration and sign off. The cost to an adviser for the solution is a one off GBP6,000 with an undertaking of no adviser overlap in a geographical location. The solution leaves the adviser to select their identified scheme provider and funds.
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