M&G has increased the commission payable to IFAs for Pep transfers into two of its investment funds.
The M&G Corporate Bond Fund and the M&G High Yield Bond Fund will now pay IFAs 4 per cent initial commission instead of the previous 3 per cent for Pep transfers.
Neither fund has an initial charge, but there is a withdrawal fee of 4.5 per cent in the first year of the investment. This reduces annually to 0 per cent after five years.
According to M&G the increase is intended to provide IFAs with greater flexibility to rebate commission to its clients.