Clerical Medical is introducing a new pension commission model designed to improve persistency rates among advisers.
The Lautro scale which Clerical Medical currently uses is being replaced with a single initial commission option and a fixed three year clawback term with changes taking effect July 9.
Clerical Medical says the new model is being introduced to reward advisers’ good persistency with better long-term fund values and higher commission, particularly for business of five years or more.
The mono charge offering will still be available.
Clerical Medical manager of pensions development Mike Brown says: “This move is about offering greater choice, improving long-term value for clients, encouraging the advice model and rewarding persistent business in what is a long-term savings product set.”
“In addition to a monocharge commission structure Clerical Medical is now offering interim fund charging which is a shorter term charge structure with higher long-term values.
“Pensions are a long-term investment and consumers need support in choosing the right pension and building that pension pot through to retirement.”