NPI is scrapping initial charges on its Taxbeater Pep and launching a guaranteed Pep in a bid to double Pep new business this year.
The £210m NPI Taxbeater Pep will have no initial charge and an effective bid-offer spread of 0.3-0.7 per cent from February 23.
NPI will pay 3 per cent commission. But a nil initial charge option is available which pays 0.5 per cent initial commission and 0.5 per cent renewal.
NPI is also launching a Guaranteed Pep with no initial or annual charges which will pay 3 per cent commission.
The Pep comes with a guaranteed return of capital if it is held to maturity, with growth based on the performance of the FTSE 100 index.
The Pep is a six-year product and will offer a free switch into an NPI Individual Savings Account next year.
Investment product development manager Jeremy Souter, formerly Henderson Investors divisional director, claims the structure of the Peps means NPI will basically be funding IFAs' commission.
He says: "These are really cheap Peps. They are going to be some of the cheapest in the market, which is a real move from a company like NPI.
"We need to have these funds here for at least three to five years to make money out of them."
Souter says NPI is hoping that the moves will double the amount of Pep business that it would normally expect at this time of year.
He says: "I would like to see about £40m coming in over the Pep period running up to the end of the tax year."
NPI manages around £200m in unit-trust Peps and has more than £11bn under management overall.