A LEADING finance expert is warning that many East Lancashire businesses run the risk of expensive fines if they fail to comply to new pension regulations.

From October this year it will be compulsory for most employers with as few as five employees to provide access to a pension scheme for their staff. Many will do this by way of a new Stakeholder Scheme to be introduced in April.

But Steve Sutton (pictured), of Pierce Financial Services, in Richmond Terrace, Blackburn, said many employers simply will not be prepared for the new Stakeholder Pension regulations.

He said: "Employers will have until October 8 to comply with the new law. Failure to do so could result in a hefty fine imposed by the government's regulator."

Mr Sutton goes on to warn employers to look carefully at their pension arrangements now so that they are properly prepared when Stakeholder Pensions are introduced.