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Aviva cuts stakeholder commission

Aviva has cut initial commission on its stakeholder pensions by nearly a quarter from a maximum 3.36 per cent to 2.52 per cent.

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.”

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Comments

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  1. Aviva seem determined not to wake up to the facts that:-

    1. they have done irreparable damage to their relationship with the IFA sector by unilaterally converting all existing PP’s to stakeholder as of 6th April 2001,

    2. Stakeholder is the worst thing ever to be foisted on the industry,

    3. Any life company marketing stakeholder was effectively writing its own commercial death warrant,

    4. Manipulating commissions to attract business is a redundant mechanism.

    5. CAR is the way forward. Commissions are old hat and will soon be history.

    This latest change to the terms of existing contracts written by advisers stupid enough to believe that statekeholder would ever work will only make things worse.

    We’re just coming up to the ninth anniversary of when we stopped using Norwich Union/Aviva for anything but pure protection and we’ve never looked back once.

    The other day we were trying to find out why valuations on a number of old Bonds through our agency appear to be unavailable on the Aviva website.

    Which is your regional office?

    I didn’t know there still was any sort of regional office.

    Who’s your local consultant?

    No idea. We’ve not heard from any Aviva consultant for as long as I can remember.

    It can’t be that much longer before Aviva throw in the towel and close to new business.

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