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.”

Recommended

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

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com