Standard Life set for return to paying pension commission
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Standard Life is considering paying initial commission on personal pensions and group personal pensions.
The company stopped paying initial commission on both pension products in 2004 but it is understood it is to backtrack on the decision.
A Standard Life spokesman says: “We continually review the market and while we have said in the past that some commission models are not financially viable, there are some that are. If changes in the market mean that advisers will use new, viable, commission options, then we would consider re-entering the commission market.
“Our new model pensions are customer-agreed remuneration in body and spirit, the client agrees it in the form that suits them with the adviser and we facilitate through the product within carefully controlled limits.”
Hargreaves Lansdown head of pensions research Tom McPhail says: “Standard Life tried to break new ground as an insurance company promoting the Sipp market. They have had some success in terms of turnover but I do not think it has been wholly successful for them. If they go back to paying initial commission, this is something of a U-turn for them but it would not surprise me.”
Informed Choice managing director Martin Bamford says: “If they want to acquire market share, then yes it makes sense but it does not send a very positive message to the market with the changes that are coming.”
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