Pensions - Articles - Royal London welcomes updated DC code of practice

 “Given that nearly three quarters (74%) of employers with fewer than 30 staff have chosen a trust based scheme for auto enrolment1, we welcome the publication of the updated DC Code of practice and in particular the importance it places on investment governance and administration. We remain concerned however that many employers are not demonstrating due diligence in their choice of auto enrolment scheme, leaving them open to complaints and possible litigation from their workers.

 Low paid workers, for example, may not enjoy the benefit of tax relief in some trust-based schemes. We believe that advisers can play a key role in assessing and reviewing the suitability of trust based auto enrolment schemes in line with the Regulator’s code of practice, giving employers peace of mind that they have made the right choice.”