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.”
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.
The Pensions Advisory Service (TPAS) helped 187,000 people in 2017/18, a 9% fall on the previous year despite setting up special helplines for specific scheme members.
The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under Freedom of Choice at £40,000 if elected into government.
In a hard-hitting interview with Stephanie Baxter, the former chairman of Carillion Pension Trustees explains why he thinks a blame culture and too much red tape are damaging pensions and why he feels regulators are getting it wrong.