View more on these topics

ScotEq slashes individual stakeholder commission

Scottish Equitable is slashing commission on regular-prem-ium individual stakeholder business but is raising single-premium commission in a bid to capture transfer business.

The move follows Norwich Union’s decision to cut individual stakeholder commission last month. Standard Life and Clerical Medical are also reviewing stakeholder remuneration.

ScotEq will cut regular-premium commission from 45 per cent of Lautro rates to 10 per cent of Lautro rates from Nov-ember 29.

Adviser remuneration on single-premium business has been raised where consumers are under the age of 54.

This breaks down as a 0.5 per cent increase to 4 per cent on contracts for individuals aged 50-54, a 1.5 per cent rise to 5 per cent for the 45-49 age band and a 1 per cent rise to 5.5 per cent on the under-45s.

Commission on transfers and other single premium business for those aged 55 and over and on group business remains unchanged but stays under review.

ScotEq managing director of individual pensions and investments Andy Marchant, says: “There is widespread industry recognition that the current high commission levels on price-capped products are unsustainable.”

Recommended

Keith Popplewell: Tolerance levels

In my last few articles, I have identified and discussed the nature and extent of the three main risks involved in a pension drawdown strategy – interest rates, investment performance and the risk from increasing life expectancy.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com