View more on these topics

Dunbar in monthly pension charge for tied advice

Allied Dunbar is to start charging investors £2.75 a month for tied advice on its stakeholder-friendly pensions.

The move, which has won praise from independent advisers, will see the charge become an integral part of the product although it will fall outside the 1 per cent annual man-agement charging cap stipulated under stakeholder pensions.

Many independent advisers believe this could be the way forward for the rest of the industry.

Dunbar&#39s individual pension plan and group plan, launched last week, will have 100 per cent allocation, a 1 per cent fund-based charge and no trans- fer out charges.

The minimum monthly investment is £50.

On a £600 annual investment, equivalent to £50 a month, Dunbar&#39s £2.75 a month advice charge would amount to £33 or 5.5 per cent of the annual investment.

Zurich Financial Services press officer Sandra Paul says: “We decided on our advisers&#39 remuneration package after extensive research carried out at the start of the year.

“We found that a monthly fee was the most acceptable way to charge for advice in the eyes of consumers.”

IFA Torquil Clark pensions development manager Tom McPhail says: “It is an ingenious solution.

“It is amazing how the market manages to find solutions by passing stakeholder pension rules. Others will go down this route, for sure.”


Fears over sub-prime fee bias

IFAs fear high procuration fees are encouraging unscrupulous advisers to inappropriately recommend sub-prime mortgages.Advisers and rival sub-prime providers claim some lenders are paying as much as 3 per cent of the mortgage value in procuration fees, raising concerns that certain products may be favoured over others.Many sub-prime lenders are not covered by the mortgage code […]

Examine the examiners

Training plays a critically important role in our profession by broadening our knowledge which, in turn, enhances the service we provide to clients.However, we do have a substantial problem within our industry caused by the need to obtain qualifications by examination.We are successful businessmen and women who are already earning substantial salaries by providing a […]

Yorkshire Building Society – Fixed Rate Savings Bond

Monday, 16th October 2000.Type: Maxi or mini stocks and shares Isa linked to the FTSE 100 Index.Aim: Growth by investing in corporate bonds.Minimum-maximum investment: Maxi Isa – £500-£7,000 lump sum, mini Isa – £500-£3,000 lump sum.Investment choice: 100 per cent corporate bonds.Term: Five years.Guarantee: 100 per cent of original investment returned after five years and […]

M-Link in net deal with big life firms

M-Link, the e-trading portal for IFAs from software giant Misys, has enlisted seven more of the UK&#39s biggest life offices to offer products online.M-Link says it is in the final testing phase with Norwich Union, Standard Life, Clerical Medical, Legal & General, Prudential, Scottish Provident and Sterling.Friends Provident is making its investment bond available on […]

CGT entrepreneurs' relief

Entrepreneurs’ relief is due, subject to meeting certain conditions, in respect of capital gains arising on ‘material disposals of business assets’. These ‘business assets’ include: Read more


News and expert analysis straight to your inbox

Sign up


    Leave a comment