Commission ban on qualifying occupational pension schemes used for auto enrolment

From 1 April 2018, we will no longer pay financial advisers commission for qualifying occupational schemes used for auto enrolment.

Regulations came into force on 1 October 2017 banning member-borne commission for these schemes. The ban takes effect from 1 April 2018.

This is set out in The Occupational Pension Schemes (Charges and Governance) (Amendment) Regulations 2017.

Which schemes are impacted by the regulation?

A small number of Royal London schemes are impacted by these new regulations. This includes money purchase AVC only arrangements which are held under a qualifying occupational pension scheme used for auto enrolment.

We’ve written directly to the trustees and financial advisers of these schemes to let them know that commission payments will stop in line with the regulations.  

If you believe you have a Royal London scheme which could be impacted by these regulations and you haven’t heard from us, please get in touch by email.

We’ll write to the trustees of impacted schemes again in April 2018 to confirm we are complying with the regulations.