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Misys backing &#39stakebusters&#39

Misys IFA Services is end-orsing IFAs who price advice into the annual management charge, busting the Government&#39s 1 per cent charge cap.

The move is supported by Misys stakeholder panel of six companies which comprises Norwich Union, Axa Sun Life, Clerical Medical, Scottish Amicable, Scottish Equitable and Scottish Widows.

Misys says advisers can incorporate an advice charge into the AMC up to 0.5 per cent on top of the stakeholder limit if the client agrees and the charge is fully explained in a reasons-why letter.

It says this also meets the regulator&#39s requirements on material disadvantage.

But Misys accepts such a move will mean the plans are no longer stakeholder but says advice cannot always be priced into the 1 per cent cap. It argues that the Govern-ment should not restrict remuneration.

It is urging advisers recommend mono-price charging structures which allow flexible annual management charges on “stakeholderesque” individual and group personal pensions.

Misys is also recommending new policies be placed with one of the network&#39ssix preferred stakeholder providers.

Misys IFA Services sales and marketing director Max Wright says: “When it comes to remuneration to IFAs for advice given to clients, this should not be restricted by the Government.”

Norwich Union spokeswoman Louisa Slater says: “We believe there are circumstances where clients will require more advice when choosing their pension policy than can be provided for within the 1 per cent stakeholder charging structure.”

Scottish Equitable head of marketing Ken Hogg says: “We fully support IFAs who want to be paid outside the 1 per cent cap. Unlike other life offices who are fixated with the 1 per cent world, we believe in some instances &#39stakeholderesque&#39 schemes with flexible charges will help the Government&#39s aim of increasing pension provision.”

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