Clerical Medical has been criticised for restricting advisers to taking commission on an indemnity basis.
In June, Clerical introduced a new pension commission model which it says is aimed to improve persistency rates among advisers.
It replaced the Lautro scale that was previously used by Clerical with a single initial commission option and a fixed three-year clawback term.
Christopher Charles Financial Services principal Chris Petrie says he was shocked to find that Clerical Medical is no longer allowing advisers to take commission on a non-indemnity basis as his firm moved away from ind-emnity commission several years ago.
Petrie says: “The retail distribution review may find that even non-indemnity is not the final solution but it sure is a whole lot better than receiving a four-figure indemnified lump sum on day one with the potential for a client stopping his premiums and the life company clawing back part of that payment.
“I realise that some IFAs do run their business in that bizarre manner but we do not and I am annoyed to find that Clerical Medical have taken such a retrograde step.”
A Clerical Medical spokeswoman says: “Very few IFAs were opting for non-indemnity commission so, as part of simplifying the process, we removed this commission structure.
“Most IFAs prefer a single up-front commission payment. It allows them to take the commission earlier than before and gives them the control over those funds.”