Accountants, you can recommend a workplace pension to your clients

Many accountants may assume that recommending a workplace pension provider to an employer crosses into regulated financial advice. However, guidance from The Pensions Regulator makes an important distinction between advising employers about workplace pension schemes and advising individuals about their personal pension decisions.

For employers, business advisors including accountants and bookkeepers can provide factual information, compare pension schemes and even recommend a particular scheme without needing FCA authorisation. This can include comparing investment funds, charges and services.

There are important boundaries, however. Advisors cannot provide the same type of pension advice to individual employees, which falls within FCA regulated activity. The employer also remains responsible for choosing its workplace pension scheme.

For accounting practices, this creates an opportunity to provide additional value to employer clients. Helping businesses review whether their existing auto-enrolment scheme remains suitable, explaining the available options and supporting informed decision making can strengthen client relationships.

Penfold also highlights resources available to accountants, including comparison materials, webinars, guides, FAQs and email templates to support these conversations.

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