Accountants Perspective

• Delivery of an AE solution is a non regulated activity.• Stepping outside of a default solution can take you into a regulated

environment.• Accountants have a degree of anxiety about becoming exposed to a

regulated environment.• Peace of mind can be had by having a regulated entity who can be called

upon as and when required.• Arguably, the Accountant led, passive adviser model is the most logistically

viable solution for the mass SME space – we are working with several accounting entities who have several thousand corporate clients.

Adviser’s Perspective

• Operating and understanding the payroll arena is not a natural extension of what advisers do.

• Advisers understand and operate in a financial services regulated environment and problem solve on an arising basis.

• Acting on a retained basis and being brought into play as and when required will ease logistics.

• Providing a targeted marketing approach to identify and pre-empt inherent challenges – AE and Pension Protection.

Client’s Perspective

• They have a solution in place that ensures they are TPR compliant.• Their accountant manages the data/payroll input.• Should there be any questions raised by business principals or other staff

relating to Portfolio selection, Pension consolidation, at retirement options – there is a retained adviser who can be called upon.

Accountant Led, Passive Adviser Case Study 1

Accountant Challenge

• Accountant realises that managing 200 payroll clients into AE with no pension and little understanding of the regulations is a challenge.

• They also realise their payroll support team could not manage clients AE needs if all clients want a different provider.

• They are aware that some providers are already closing their doors. This will not work in their busy payroll environment - they need certainty, a solution that takes everyone, that will manage automatic enrolment, contribution collection, opt out, opt in, postponement general/individual in pay period, statutory letters, record keeping, triennial re-enrolments and be compatible with their SAGE system.

• Most importantly they have heard horror stories about the potential for liability for stepping over the thin line between non- regulated and regulated advice.

Accountant Led, Passive Adviser Case Study 1

The Solution

• Both parties realised the value of a technology led process capable of managing volume that was compliant, reduced risk to both businesses, overcame the advice risk for the Accountant and realised the advice potential in growing traditional advice to business owners.

• Accountant contacted all payroll clients to advise them of their AE solution and to introduce the Adviser.

• The Adviser made the Portal available to the Accountant on a no charge basis. The Adviser is taking no charge on the AE on boarding. The Accountant on boards the Payroll client directly onto the system via the Accountant/Employer branded Portal.

• The Adviser remains passively in the background. When a question of advice arises eg transfer of old style PPP, Retirement Options or advice on best investment strategy the Adviser steps in by request and handles the advice process directly on an individual basis.

• Accountant is providing Free On Boarding service to Payroll Clients, currently charges a flat rate annual charge for Payroll Services - this has been uplifted to provide AE payroll support.

• Adviser only earns by providing individual advice to appropriate members.

Auto Enrolment Proposition

Company IM Payroll Software Functionality

• Intermediary only • No scheme pricing – Unlimited capacity • (will take all employers/employees) • Free assessment reports • Dynamic compliance reports• Data cleansing reports• Automatic assessment of employee eligibility• Allocation of suitable pension outcome• Pension Compliance Management Software • Contributions management • Employee communication management • Full audit reporting • Digital storage of statutory documents

• Fees

• Company Charge £750 pa• Reduced charges for small companies:• 5-9 employees £500 pa• 1-4 employees £250 pa• (plus vat, based upon each payroll)

•

Payroll Data In

IM Services Out

Straight through processing to QWPS

Provide AE support &AdviceEmployee supportEmployer Support TPC compliance Ongoing advice