Consultancy charging ‘will become widespread’

Consultancy charging will be made to work and will become widespread in the industry once employers and employees understand it, says Aviva.

But predictions of less rebroking and a contraction in the intermediary community will be proved accurate, says Steve Jackson, group pensions marketing manager at Aviva

Jackson is a member of the industry working party on consultancy charging, which is due to present its findings at the end of February.

Jackson says: “I see a future for consultancy charging, given the fact that employers do not like paying fees. Once consultancy charging becomes the market practice, it will become widespread. The challenge is to help people to understand why they are being charged. But because of the employer contribution, it will still be worth joining.

“But there will be a contraction in the industry and fewer moves from provider to provider post-RDR.”