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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.”

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