View more on these topics

10% annual charge for NU non-stakeholder pension

Norwich Union is charging 10 per cent on the first five years’ premiums for its price-busting non-stakeholder pension for the full advice market.

Commission ranges up to 50 per cent of Lautro rates plus uplift, equivalent to 25 per cent of the first year’s premiums before uplift.

Charges for regular-prem-ium savers are either 10 per cent for five years or 20 per cent of the first two years’ contributions. Fund charges vary from up to 1 per cent on 29 in-house NU funds to between 1.1 per cent and 1.9 per cent on 34 external funds from eight firms.

These charges are reduced for regular-premium custo-mers and lump-sum customers paying for advice through fees and for transfer business of more than 10,000.

NU has cut the fund choice on its stakeholder range from 42 to just four – its stakeholder with-profits, balanced managed, retirement protection and deposit vehicles.

Head of pensions Iain Oli-ver says NU’s full advice proposition will not run into difficulties on RU64. He says: “If customers need full advice but cannot pay a fee, they need to finance it through commission and unless we grasp that nettle, the pension market is going to shrink considerably.”

Origen pension specialist Mark Stopard says: “This will allow IFAs to provide a reasonable level of advice.”

Which? senior policy adv-iser Mick McAteer says: “It comes as no surprise but it is unfortunate that the Government and the FSA took so long to realise that the industry has no interest in the stakeholder target market.”

NU has also raised its lifetime mortgage commission rates from 0.5 per cent plus 150 to 1 per cent of loan value.

Recommended

Platform joins The Mortgage Alliance’s panel of mortgage lenders

The Mortgage Alliance has appointed Platform the intermediary lender of Britannia Building Society, to its panel of mortgage lenders.Platform, an all-status lender, will now be able to offer its advisory clients rates on non-conforming, right-to-buy and prime mortgages, in addition to self-certification and buy-to-let products.The Mortgage Alliance managing director says: “Platform is a significant addition […]

Boulger on Mortgages

Some lenders whose KFIs weren’t available online on M-Day have got their act together but many still don’t offer this facility and there are still no-go areas. Portability is a particular problem, with most lenders unable to produce an online KFI when a product is ported and some not able to produce one manually.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment