Two-thirds (66%) of small- and medium-sized enterprises (SMEs) have not heard of the retail distribution review (RDR) and 41% have not heard of auto-enrolment, according to research by RSM Tenon.
The RSM Tenon Business barometer, a quarterly survey carried out by YouGov among senior management in SMEs, also found that only 9% of respondents understand how RDR will affect their organisation, and 19% mistakenly think that auto-enrolment does not apply to them.
Nick Courtney, head of employee benefits at RSM Tenon, said: “It’s essential that SMEs understand what RDR and [auto-enrolment] mean for their businesses.
“Doing nothing is not an option. Planning well now is essential to help companies manage the associated costs and resource requirements.”
Under RDR, from 1 January 2013, all independent financial advisers and employee benefits consultants will be remunerated on a fee rather than a commission basis. This fee-based model puts the payment in the hands of the employer or employee.
From 1 October, all UK employers must enrol employees into an eligible workplace pension scheme, and contribute towards that scheme.