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LIA says just 50 per cent of firms have sold group stakeholder

Only 50 per cent of LIA members claim to have sold group stakeholder while more than half have conducted individual stakeholder business, according to a new survey.

The survey found that while 57 per cent of LIA members have sold stakeholder to individuals since its launch in April, just half have sold company or affinity group stakeholder schemes for their clients.

The trade body says this unexpected finding from its online survey of 700 members is an indication that group personal pensions are being sold in favour of stakeholder pension schemes.

It also reveals that 88 per cent of respondents experienced cuts in commission levels in the last year.

Of this figure, the LIA says that, as would be expected, 98 per cent said the cuts affected pension business while about 20 per cent suffered cuts in life insurance and investment business.

Public affairs director John Ellis says: “Perhaps the most surprising outcome is the number who are in fact doing individual stakeholder business although it still leaves 43 per cent of respondents who apparently are not. I would have personally expected more members to be doing group business.”

Misys head of marketing Andrew Bedford says: “A lot of our guys are selling GPPs because of the fund choice and the cost of advice and clients are happy to pay for it. Over the long term, there is not a lot of difference between stakeholder and GPPs.”

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