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Friends widens fund range for personal policy

Friends Provident has finalised the details of its forthcoming personal pension launch which will be positioned alongside its revamped stakeholder offering.

Both the personal pension and stakeholder versions offer a flexible charging structure enabling advisers to take either fees or commission to a level agreed with the client. Both pensions pay up to 10 per cent of Lautro rates as initial-only commission regular premium business and up to 4 per cent on transfers.Up to 10 per cent of Lautro rates is available on an initial and 0.1 per cent fund-based commission basis, dropping to 3 per cent for transfers.

Fund-based commission pays up to 0.3 per cent a year on regular and single premiums and 0.4 per cent for transfers. The extra 0.5 per cent annual charge allowed on stakeholder contracts from April mean this can be taken as extra commission for the first 10 years on both contracts.

The main difference between the two pension contracts is the wider fund choice available on the personal pension, which is branded the personal range. The personal pension is stakeholder-compliant if in-house F&C-managed funds are selected. The broader external range encompasses more than 50 funds from 17 managers, including names such as Artemis, Fidelity and New StarAnnual charges are reduced by between 0.1 per cent and 0.25 per cent for pension pots starting from 20,000.

Head of pension marketing Jeremy Ward says: “We have introduced online new business submission, valuations and switching, which helps with our costs and the service proposition. The charging structure is transparent and flexible and we believe this range will meet the needs of the vast majority of IFAs and their clients.”

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