MetLife is reducing the ann- ual management charge of its trustee investment plan from 0.95 per cent to 0.5 per cent for all new and existing customers.
MetLife moved into the UK market a year ago and says it is now aiming to expand further in the corporate market.
Following the charge change, the company will offer a 95 per cent allocation rate with no exit penalties and 5.5 per cent initial commission on its fully access- ible version.
For advisers with different commission requirements, the product allows sacrifice of the initial commission for additional allocation or conversion of the initial commission into trail commission.
Alternatively, if the client would prefer higher allocation, the maximum allocation version of the product can be used with an addit- ional 5 per cent allocation for an additional 1 per cent a year charge for five years.
MetLife UK head of tech- nical services Peter Carter says: “The Tip market has seen steady growth in the past year as increased stockmarket volatility has demonstrated the need for products that provide valuable guarantees.
“With increasing awareness and understanding of Sipps, we fully expect the market for convenient and efficient investment products such as Tips to continue growing in popularity.
“Our price reduction is a significant move which further increases the competitiveness of our products for new customers and is a reward for existing customers.”