A SENIOR East Lancashire finance expert is warning that many of the area's businesses run the risk of expensive fines if they fail to comply to new pension regulations out in October.

From then it will be compulsory for most employers with as few as five staff to provide access to a pension scheme for their workers. Many will do this by way of a new Stakeholder Scheme which is being launched in April.

However, according to Steve Sutton, of Pierce Financial Services, Blackburn, many firms will not be prepared for the new rules. Employers will have until October 8 to comply with the new law," he said. "Failure to do so could result in a hefty fine imposed by the Government's regulator."

Mr Sutton said employers needed to look carefully at their pension arrangements to be properly prepared when Stakeholder pensions are introduced.

"With such a short preparation period, delaying your decisions could result in your company missing the deadline," he added. "By acting now, you can make a more considered, and arguably better, decision on such an important issue."