The ICAEW Guide To The Regulation Of Auto Enrolment Advice

Conclusion - It is the ICAEW's opinion that recommending a workplace pension provider does not constitute advice.

Below is a summary of the guidance given by the Institute of Chartered Accountants in England And Wales (ICAEW) on the regulation of advice pertaining to Auto Enrolment and the various auto enrolment solutions that are available to clients.

Meeting

Please click here to see the official ICAEW document

Please note that the material on our website is not advice. Please refer to the ICAEW document here for advice. The text below is a summary of the ICAEW document.

Many accountants, business advisers, payroll bureaux and book keepers believe they are not entitled to give advice on auto enrolment and the strengths and weaknesses of different auto enrolment solutions. The advice from the ICAEW defines what is regulated advice and requires FCA authorisation, what is regulated advice and cannot be done without a DPB licence, and what is not regulated advice.

The summary below explains which types of advice are regulated and which are not. The summary also explains that recommending an auto enrolment solution to your clients is not regulated, and neither is implementing an auto enrolment solution for an employer. Therefore, if you wish, you can recommend Smart Pension to your client and use our advisor platform to implement auto enrolment within your client's business. To set up an advisor account with us, click here.

Actions that are not regulated:

  • Having a discussion with an employer in which you assess the strengths and weaknesses of different auto enrolment schemes.
  • Coming to a conclusion on the scheme that is right for the particular employer, and implementing the scheme for the employer.
  • Having a discussion with employees on the different pension products that are available to them.
  • Referring the employer to an appropriately authorised advisory firm that can provide the employer with the necessary financial advice. You must give the employer the contact details of the advisory firm for them to contact, and not give the employer’s contact details to the advisory firm.

Actions that are regulated and cannot be done without a DPB licence:

  • Passing the details of a client to an appropriately authorised advisory firm, after having got the permission of the client to be contacted by the same appropriately authorised firm.
  • Assessing the advice of an appropriately authorised firm and giving your opinion as to whether the advice is useful to the client.
  • Helping an appropriately authorised firm in the implementation of investment advice.
  • "Arranging to make payments into, or to place property into, a personal pension scheme, including a self-investedpension scheme at the request of a client, but not recommending the acquisition of any rights in such a scheme."

Actions that are regulated and require FCA authorisation:

  • "Discussions with an employee on the relative merits and suitability of a specific pension contract e.g. a particular self-invested personal pension offered by company X."
  • Recommending a specific personal pension contract to an employee.

In conclusion, suggesting to your clients that they use Smart Pension to set up their workplace pension is not regulated advice and therefore is not advice that can only be dispensed by an appropriately authorised firm or individual. Therefore, if you would like to, you are free to recommend our pension platform to your clients.

To sign up your client to a workplace pension, please click here.

Please note that the material on our website is not advice. Please refer to the ICAEW document here for advice. The text above is a summary of the ICAEW document.

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