Driving into work today, a strange thing happened…. over the radio the UK government invited me to take some free money from my employer…

Apparently, “we are all in” and if I put some money into a pension then my employer has to do the same and I get money? Even better I only pay low, low charges on my free money?

Auto enrolment is a dangerous thing for you and the whole adviser industry…

On a base level it creates an opportunity for you, in terms of a “foot in the door” with business owners who could give you other, more profitable work.

Unfortunately, the low, low charges being promised are simply not true. Although NEST stipulates a 0.3% charge to insurance company providers, most monies will fall into the TATA default, which carries an extra 1.8% charge.

This idea of not being able to charge an amount of the fund is a worrying development in government and regulatory thinking.

What if the FCA, in its infinite wisdom decides that taking a percentage of assets is not a fair method of charging clients and that an hourly rate would be more appropriate?

Do you think there would be a groundswell of support from the public in support of advisers getting paid by a percentage or would they be keen on an hourly charge?

What would the impact be on your turnover and profit if your largest funds turned into a £200 per hour charge?

Many larger advisory firm owners are considering whether this industry, plagued by government tinkering, is the right place to hold the majority of their assets?

Hopefully, there will never be caps on other charges but I wouldn’t bet on it.