View more on these topics

Product matters

AMP NPI&#39s new range of single-charge individual and bulk S32 and S32A contracts alongside single-charge Cimps and group AVCs is a significant move to dominate the transfer and pension restructure market. The range can accommodate guaranteed minimum pensions and protected rights – a major advantage compared with some ranges.

I also like its approach to breaking the link between the GMP and with-profits. Rather than accepting GMP based on relative size to the transfer and forcing a percentage into with-profits to cover the liability, each transfer is tested and allocation reduced (individual contracts) or annual charge increased (bulk plans) to cover the liability. Thus, the whole transfer can be invested in the full fund range rather than the traditional percentage in with-profits.

Individual S32s may have the allocation reduced by up to 15 per cent to cover the GMP liability. Annual charges range from 0.75 per cent for nil commission through to 1 or 1.25 per cent for commission options. Commission ranges from 3.6 per cent with no trail through to 0.6 per cent with trail.

For bulk S32s, GMP liabilities are pooled and underwritten for the whole scheme, meaning some non-viable individual transfers get the benefit of the GMP liability being cross-subsidised. Terms differ for individual contracts. Allocation is fixed at 100 per cent and the GMP liability is covered by increased retention of the annual charge.

The break of the GMP link to with-profits is innovative and means the company has put itself in the frame for every potential new scheme. Still no solution for S148 orders – wishful thinking?

Ashley Clark is a director of Roberts Clark


Bridging the gap

The ABI proposals1: Streamlined regulation for safe harbour products to cut the costs of advice and distribution.2: Simpler private pension legislation which will encourage employers to offer and maintain pensions and encourage individuals to join schemes.3: Wider availability of advice, including generic advice tools which can help people assess their need to save, and advice […]

Outside Edge

House price inflation is peanuts. Insurance salesperson inflation is the new hot ticket. Five life companies have clubbed together with other investors to buy 18 per cent of a business (Millfield Partnership) that lost over £7m on a turnover of just over £20.5m last time around. The price appears to value each adviser at £251,462.Aviva […]

Grave implications

It is an obvious truism that, with the exception of sole proprietors, every business is owned by at least two people although not necessarily in equal proportions. Yet the owners of only relatively few of these businesses have ever given serious thought to what might happen when one or more of the owners dies.Financial planners […]

Exeter PMI goes euro friendly

Exeter Friendly Society has established interplan euro, an individual private medical insurance (PMI) plan aimed at expatriates.The plan is designed for expatriates living in Spain, Portugal, Gibraltar, Italy, Greece, Holland, Germany or Scandinavia for at least 180 days a year. It has three levels of cover and offers benefits including inpatient & daypatient cover, outpatient […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm