StockMarketWire.com - Regulatory failures could derail auto-enrolment into workplace pensions, a former Downing Street adviser warns.

Ros Altmann - a pensions adviser during Tony Blair's premiership - is urging the Government to take action to ensure better protections for workers' pensions.

She says a report just released by a parliamentary select committee highlights, yet again, how many workers are being let down by the pensions industry.

Altmann says: "There is a long way to go before workers can be assured that auto-enrolment will work in their interests, rather than in the interests of the pension providers.

"The current patchwork of regulations is not working well and as the Government forces millions of workers into workplace pension schemes, surely it has a duty to ensure there are proper protections in place.

"It makes little sense to have two different regulators, with different rules, neither of which is providing sufficient safeguards. The FCA (Financial Conduct Authority) is not set up to specialise in pensions, but pension saving and decumulation are specialist areas, with specific rules and inflexibilities that require detailed regulatory protection.

"We must not let these unsuspecting workers down. It is already obvious that issues such as consultancy charging and lack of fee transparency, as well as failure to ensure adequate member communications and protections in retirement, have the potential to derail the trust that auto-enrolment has so far built up."




Story provided by StockMarketWire.com