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Misys sets the trend as commission is slashed

Super-network Misys is gearing up to pass on cuts of up to two-thirds in

pension commission to its members as stakeholder rocks the sector.

As the biggest IFA grouping in the country with 4,000 registered

individuals, Misys is increasingly regarded as a trend-setter for the whole

sector.

It says the cuts will initially affect stakeholder-friendly products but

believes the change will hit all pension products and then all other

products sold by IFAs.

But the group is fighting to secure better deals by lobbying 20 life

offices for better terms. It has met with some success as some providers

are offering cuts of 40 or 50 per cent rather than two-thirds.

The expected two-thirds reduction to 50 per cent of Lautro rates or its

equivalent will be gradual, with the first announcements expected in the

third quarter of this year. Present commission is typically 130 per cent.

Misys, which plans further expansion next year, is making the final

judgements on its stakeholder panel which is expected to include six

pension offices.

Misys IFA services sales and marketing director Max Wright says: “There

will be a gradual reduction in commission for the stakeholder world and we

want to help IFAs compete in that world. We are facing a hard slog to get

consumers to realise the value of advice.”

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