IFA Network is dismissing fears stakeholder charging proposals are too tough by tying up a deal with Friends Provident to offer a pre-stakeholder pension with a 1 per cent annual charge.
'The New Generation' pension plan boasts no set-up or surrender charges no member policy fee or bid/offer spread charges in addition to the 1 per cent annual charge.
It will be split with 0.35 per cent going to the IFA and 0.65 per cent to the life office.
Ifan believes by offering a low-charging pension well in advance of the April 2001 launch date for stakeholder it is giving its members the opportunity to develop technical expertise.
Its product comfortably beats a rival arrangement by network DBS which saw it offering a “stakeholder style” pension to nursery nurses in conjunction with Scottish Mutual. The product featured a five per cent bid offer spread.
IFA Network says the scheme, which meets current Government criteria for stakeholder pensions, is aiming to provide a cheaper alternative to group personal pension plans.
The scheme will provide access to a number of investment funds including Friends Provident's ethical Stewardship Fund and offers policyholders flexibility in terms of the payment and amount of contributions.
The network is also planing to offer the scheme on the internet which it says will slash the administrative burden of IFAs and allow clients to download information and track the progress of their policy.
IFA Network sales & marketing director Nick Kelly says: “The network has negotiated with Friends Provident on behalf of its members to enable them to offer their clients a scheme which meets the criteria for stakeholder pensions.
“Stakeholder pensions are beginning to revolutionise the pensions market and The New Generation scheme offers our members access to one of the very best in the pre-stakeholder market.”