This week the minister for pensions, Steve Webb (pictured), signed new regulations to give greater protection to pension scheme members.
Earlier this year the Government announced the results of its review into consultancy charges and its intention to act to crackdown on inappropriate charges.
Consultancy charges were introduced to replace commission by enabling employers to pass on the costs of advice to pension scheme members.
The new law affects defined contribution schemes used in auto-enrolment. It means an employer cannot receive advice under an agreement with a third party, other than a trustee, provider or scheme manager, and pay for that advice out of the members' pension pots or contributions.
"When people put hard-earned cash into a pension I am determined to make sure it doesn't get gobbled up by charges," said Webb.
"This ban will make the system fairer for anyone being automatically enrolled into a workplace pension."
