Member

Subsection (2)(d) in the proposed new clause explicitly refers to small and medium-sized enterprises. This is important because smaller firms are less likely to have specialist pensions expertise; they are more sensitive to administrative burden, and more likely to adopt the simplest default option, even if it is not the most efficient or beneficial in the long term. Here, for example, the managing director may be the sole person, who often manages this on the side. The tasks can be complex, time-consuming, and indeed sometimes overwhelming. If cashflow is tight, the amount of outside help is nil or minimal, and the advice can be subpar because funds are tight. There is a clear imbalance between a multinational corporation with access to pension consultants and, say, a 10-person business attempting to comply with automatic enrolment requirements while also managing payroll, taxation and day-to-day operations, as the Committee would expect. Structured and authoritative guidance from government would help to level that playing field. That is a matter of fairness and supporting small businesses where they really need help.