The group says the move is part of its strategic goal to align itself with distribution partners who ’embrace the need to change to a retail distribution review type model’.
Axa says it has focused its proposition on the larger employers and their consultants following the launch of its corporate proposition in 2007, many of which work on a fee-basis.
The group says it will be working with its distribution partners to determine how it can support their businesses going forward. Where there is client demand, Axa says it will continue to offer level and fund based commission as well as flexible adviser remuneration.
Axa is also liaising with its distribution partners for honouring existing pipeline business, which has already been agreed on an initial commission basis. The group says existing business is not affected by this move.
Axa distribution and marketing director for corporate pensions Nick Groom says: “AXA’s decision represents an acceleration of our strategic vision, articulating our desire to offer a clean and transparent corporate pensions proposition to our important distribution partners on behalf of their blue chip clients.
“Significant changes in the corporate benefits marketplace, with the imminent review of the distribution landscape through the Retail Distribution Review, the ‘new model’ economy as a result of the current turmoil, and the government entering the market with Personal Accounts, means that employers are looking for new workplace solutions and is transforming how providers support advisers and their clients. Our strategic decision is right for AXA but, importantly, we believe, right for our distribution partners too.”