AE pace of change creating huge opportunities for advisers
110,000 employers will need to comply with auto enrolment in the first three months of 2016. That presents a huge opportunity for advice professionals working in this space who have the right support and technology, says Chris Daems, principal of Cervello Financial Planning and co-creator of AE in a Box
Since 2012 thousands of employers have complied successfully with auto enrolment. However in the last quarter of this year the number of employers who will be required to meet auto enrolment regulation is predicted to double.
I don’t think the impact of this, for employers and the professionals who work with them, can be underestimated… nor the impact on the first three months of 2016.
As the first quarter of 2016 starts it would have taken three-and-half-years for 100,000 odd employers to comply. In the early months of next year it is estimated that an additional 110,000 employers will need to meet the new regulation.
This is a significant change of pace.
Over 100,000 employers complying in three-and-half-years compared to 110,000 having to comply in a three-month period means that the velocity of the firms who have to meet the new regulation will increase 14-fold virtually immediately.
Also it’s easy to forget that the firms who need to comply in the first three months of 2016 have a journey to make.
Planning should start now
Typically in our experience the ‘auto enrolment’ project for most employers takes between 9 -12 months.
This means that the 100,000+ firms who need to comply near the end of this year ideally need to ensure they are starting to build a project plan, making some decisions and taking some action now.
The importance of preparing early has been made more pertinent by something which is also increasing in pace.
Non-compliant employers are being hit by financial penalties more often than ever before.
So, if you’re a financial professional, looking at the best way to work direct with employers is now more pertinent than ever. Likewise, with your professional connections clients, because for accountants and payroll providers wanting to ensure they have an auto enrolment solution in place to deliver a service to all of their clients, there’s never going to be a better time to prepare – in fact leaving this any later might put some of their clients at risk.
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