Allied Dunbar has revealed details of its group stakeholder scheme which
is set for launch in October.
Dunbar claims its decision to wait up to six months after most players
have launched their group propositions is down to its desire to assess the
market without rushing in.
The new Dunbar product will not be available on an individual basis, with
the individual retirement plan remaining the life office's vehicle for
individual personal pension planning.
It says its stance on stakeholder business is that fees should be paid to
advisers wherever possible. Advisers in its franchise network will be paid
2.25 per cent on all contributions to the new product, provided
contributions are £500 or more.
Alternatively, advisers can elect at outset to receive a trail fee of 0.25
per cent. This will be payable on funds under management of £25,000 or
more per scheme.
Pension marketing director Ian Price says: “With the launch of
stakeholder, many advisers have been asking us what Allied Dunbar will be
offering in the new environment. We have deliberately held back from an
early commitment as the market has been continuously changing and there
have been many matters of detail to clarify.
“The decision not to rush into the market has provided us with the
opportunity to better assess the market and to provide a sounder
stakeholder solution. We have focused very hard on making the group
stakeholder plan attractive not only to employers and their staff but also
to our advisers. We hope it will prove as successful as our individual
retirement plan, which is now selling above our targets.”