Since Auto Enrolment began in 2012 more than 20 workplace pension schemes have been referred to The Pensions Regulator, amid allegations they are fraudulent. One has allegedly been secretly putting members’ money into hedge funds.
The Pensions Regulator has declined to comment upon the matter. Pressure has been mounting on the Government in the last few months to tighten controls on master trusts after a multitude of reports emerged, warning against their legitimacy. The FT Adviser, who printed this most recent report, staked a claim as far back as August that some of these so-called ‘master trusts’ seemed less than reliable. Indeed Henry Tapper, founder of auto-enrolment service Pensions PlayPen, went as far as to report seven of them to both Action Fraud and The Pensions Regulator.
Whilst the actions of these trusts are not necessarily illegal, they go “against the spirit of the legislation”. The main problem with them is that they are incredibly easy to set up; all you have to do is apply to HM Revenue and Customs.
We reported back in February that the executive director for Auto Enrolment at The Pensions Regulator, Charles Counsell, was concerned about such opportunist pension providers. This was mainly due to TPR lacking the power to shut down unregulated organisations. Evidently, the landscape has remained largely unchanged.
The importance of using an Independent Financial Advisor to set up your Auto Enrolment scheme therefore cannot be underestimated. In this climate of uncertainty, and with rogue master trust numbers growing by the minute, we cannot recommend highly enough that you get your scheme set up with an FCA regulated IFA or provider.
IEP Financial Ltd are experts in workplace pension schemes, and have a team of specialists to cover this area of advice. We have already successfully guided many businesses through their ‘staging date’ since 2012, and also provide solutions for employers of all sizes. Please click here for examples of businesses who have used our expertise, and here for more information on the Auto Enrolment solutions we provide.
If you would like to set up a meeting with one of our Independent Financial Advisors to discuss your Auto Enrolment options,
then please call our Hove office on 01273 208813 for a free, no-obligation initial consultation. If you are already Auto Enrolled but would like us to review your scheme, please contact [email protected].
This article was originally published on Thursday, May 19, 2016 – 14:37
IEP Financial is authorised and regulated by the Financial Conduct Authority (FCA)
