UK - Scottish Life is revamping its fee structure to help IFAs move from commission to fees and boost the take-up of pensions.
The firm has launched a personal pension range – including stakeholder and executive schemes – which will allow IFAs to move to a fee-based business structure.
The range is designed to allow IFAs to set both the annual management charge required by the client and the type of payment they wish to receive.
Rather than receiving commission, IFAs can charge a fee for the advice they provide when they sell a Scottish Life pension and the money will come direct from the customer’s contract.
Scottish Life believes the “nice and clean” fee structure will help attract more first time pension investors.
Clients will be eligible for annual management charge rebates when their fund is worth £5000 instead of the £50,000 charged by other firms.
Scottish Life individual pensions marketing manager, Mark Polson, said: “We carried out a great deal of research among key IFAs when designing the individual range and believe that we have one of the best products on the market.
“I’m convinced that our competitive charging structure, excellent fund range and innovative commission options make us very hard to beat.”
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