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IFAs pile pressure on providers to reprice

Providers are coming under increasing pressure from IFAs to reprice their existing pension books before they take their business elsewhere.

Confusion still surrounds Prudential&#39s commitment to reprice within 1 per cent. Despite chief executive Mark Wood announcing the intention to reprice in November, advisers are still being told that certain contracts will not be renegotiated.

Scottish Equitable is also coming under fire from IFAs for stalling on penalty-free internal transfers into stakeholder.

IFAs say they cannot advise clients to stay in highcharging legacy contracts when better terms are available. They say providers will have to take notice when big funds are transferred to rivals.

Richard Jacobs Pensions & Trustee Services director Richard Jacobs says: “Emp-loyees are enjoying stakeholder pensions but many bosses are still suffering high charges. Every pension sold pre-stakeholder should be revisited, with IFAs asking if clients are being ripped off.”

Aegon spokesman Scott White says: “We have been speaking with IFAs, considering their books of business and how to balance for the cost of future advice. Not all IFAs want to go to a blanket 1 per cent.”

Prudential distribution director Tony Kempster says: “An overwhelming amount of our existing book is consistent with 1 per cent. There are a few very old contracts that would be immensely difficult to reprice.”

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