It says single-premium commission will be reduced from February 20 while regular-premium commission will be red-uced from a maximum of 20.4 per cent of Lautro rates plus uplift to a maximum of 15.36 per cent Lautro plus uplift.
A spokesman says: “Work to make our personal pensions and income drawdown ready for the RDR prompted a review of individual pension commission.
“Following major competitors reducing commission and also leaving the stakeholder market, we have decided to reduce commission levels.”
Richard Jacobs Pension & Trustee Services managing director Richard Jacobs says: “Generally, I am all for reduced commission but stakeholder cont racts are targeted at people who cannot afford to pay a fee.
“We need to find a commission-based arrangement, otherwise stakeholder plans will no longer be sold and we will be sending a whole sector of people to the banks.”