View more on these topics

GPP charges

Axa Sun Life is slashing char ges across its group pension range to bring all schemes in line with the 1 per cent stakeholder charging cap.

The move will see a pha sed introduction of new char ges to align existing group pensions with Axa&#39s pre-stakeholder offering New World, which launches at the end of this month.

A new Bristol-based IFA servicing centre is also plan ned for the first quarter of next year. It will have the key function of persuading advisers that sticking with Axa constitutes best advice.

The company is hoping its strategy will stop mass migration of business to lower-charging sch emes and follows high-profile charge cuts by Standard Life and Prudential.

Axa will implement two different strategies to bring 12 existing charging structures within the 1 per cent cap which apply to Sun Life sch emes and the older Equity & Law book respectively.

The cuts will be phased in between December this year and April 2002. They will have the knock-on effect of squeezing commission levels.

Axa would not confirm the costs of the move but head of business development Step hen Burgess says: “There are financial implications but the other alternative was to lose the business. It is a question of balancing the two evils.

“We took a complete view of our entire old group book and its charging structure and were determined to find a solution for all these schemes.

“We will be streamlining the business with a new outward-facing service centre. Part of its function will be to provide IFAs with documented evidence to demonstrate that best advice for clients to remain with Axa.”

Recommended

Dresdner buys Elderstreet Investments

UK venture capital company Elderstreet Investments has this week been acquired by Dresdner Kleinwort Benson, the investment banking division of Dresdner Bank. DKB will now own 82 per cent of the business and said Elderstreet would develop a pan-European platform for early stage IT software technology investments. DKB will also be investing up to £45m […]

Pink Home Loans – Fast Track Exclusive

Tuesday, 7th November 2000.Fixed term: Until April 1, 2001.Fixed rate: 7.99 per cent.Minimum loan: £35,001.Maximum loan: Up to 80 per cent of valuation subject to a maximum of £500,000.Income multiples: 3.5 times principal income plus second or three times joint.Arrangement fee: £395.Redemption fee: Six per cent of amount repaid in first three years, thereafter one […]

EMX asks fund firms for £2m

EMX, the electronic messaging exchange, is asking fund managers to stump up an extra £2m after running into severe financial difficulties.Since the launch in June, there has been a much slower take-up by fund managers than expected and minimal use by intermediaries. By mid-September, it had only processed just over 3,000 transactions.It is thought that […]

Green light

Environmental and social out perform ance by companies is inc reasingly becoming a strong indicator of potential financial outperformance. Simply put, taking a res pon sible attitude to environmental management, emp lo yee development and local com munity involvement makes good business sense.As environmental problems become more severe and legislation, taxation and cus to mer […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment