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Friends cuts individual pension commission

Friends Provident is to bec-ome the latest life office to slash commission rates on individual pension policies, with a 75 per cent cut from February 1.

IFA remuneration on these policies is falling from 40 per cent to 10 per cent of Lautro rates. This applies to regular-premium business into stakeholder and non-stakeholder personal pension plans. Commission rates on group business is under review.

The move follows similar announcements by Norwich Union, Standard Life and Scottish Equitable.

Friends Provident head of pensions marketing Jeremy Ward says the cuts reflect the lack of margin in the products for providers and a reaction to what were previously unsustainable rates.

Ward says: “We have moved to the normal market rate which is more sustainable.”

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