Dermot Courtier, head of group pensions at Kingfisher Group, has condemned employers that collude with independent financial advisers and select defined contribution (DC) pensions with high commission to make profit at employees’ expense.
Speaking at last month’s Employee Benefits Pensions Summit, Courtier was outraged by claims that some corporate IFAs had encouraged employers to transfer pension funds into plans earning maximum commission, which is then split between provider and employer, resulting in higher annual management charges for staff.
Responding to a question by Employee Benefits editor Debi O’Donovan on the impact of this practice, Courtier said: “I am not supportive of the commission-based approach. We are transparent about what our members are paying for.
“Commission is dangerous and the collusion aspect of employers and IFAs getting together on this will come back to haunt organisations,” he added.