Companies are not doing enough to question advisers on how exactly they meet requirements for appropriate and cost-effective advice, a benefits and actuarial firm has claimed.
Premier said that smaller employers and schemes should ensure advisers do more to quantify how they can offer appropriate services and advice - rather than simply claiming an adaptation of their general offering.
Paul Couchman, managing director at Premier, said; "We have noticed a worrying trend that small schemes and companies are not doing enough to question potential or incumbent advisers on how exactly they can offer services.
"SMEs should request references from the adviser's existing clients and do far more to challenge hidden costs and the suitability of the advice put forward. "
Premier claimed it heard platitudes about ‘tailoring services' for each client, but schemes and companies should request evidence this is more than sales talk.
"Where budgeting requires certainty of costs, for example, schemes should request fixed fees for things such as actuarial valuations and administration services - thereby eliminating costly transaction fees and hourly rates," Couchman continued.
"They should also be looking at their advisers' use of technology to improve efficient processing, as well as the possibility of value-added services such as temporary on-site support or de-risking experts to make real difference for the longer term."
One person dies by suicide every 40 seconds
Nearly a fifth have no savings at all
Money causing you stress?
£4m GWP per annum across its portfolio