RDR – Disappointment at lack of progress on GPPs

Providers have expressed disappointment at the lack of progress on the clarification of the position of GPPs within the RDR.

In its RDR feedback statement published yesterday the FSA says it will only consider Adviser Charging – the new name for Customer Agreed Remuneration – on GPPs where advisers are actually giving advice to employees.
Providers are concerned that because GPPs are technically a bundle of individual pension plans then the RDR could require the Adviser Charging process to be followed when every single new member joins an employer-sponsored scheme. Aegon has been lobbying for a determination that the employer be named as the customer in GPPs and not the employee for the purposes of RDR-related regulation.
Rachel Vahey, head of pensions development at Aegon says: “GPPs do not exist as legal entities. You are currently looking at a group of personal pensions. It is disappointing we will have to wait until June 2009 before we get any progress on the corporate side.”