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ScotLife extends flexi fees

Scottish Life is extending its flexible-charging structure to group pension business.

This will mean a reduction in overall commission paid on group business but will enable advisers to be paid by fees, commission or a combination.

Financial adviser’s fee was introduced on the life office’s individual contracts in May 2003 and over 60 per cent now use the option to take fee-based advice, up from 40 per cent last year.

The cuts will see commission on typical schemes fall from 22 per cent of the first years’ premium to 15 per cent on the retirement solutions group range, based on a 1 per cent annual charge. For individual contracts, commission drops from 25 per cent to 1 per cent on the same basis.

Scheme-specific illustrations using the financial adviser’s fee remuneration pack- age are available from June 1. This will not affect increments and new entrants to existing schemes.

Group communications director Alasdair Buchanan says: “The current levels of commission are not sustainable and we are giving a flexible solution to advisers that we know works, as we have seen on our individual contracts.”


Pru principles

So the Pru are to return to the protection market after a gap of 18 months following its decision to increase CI premiums for cases still in underwriting? Bully for them.

Real simplification is needed for pensions

April 5 is the day the Government believe they will have simplified pensions. We all know that that is not going to happen. The tax environment after A-Day is likely to prove complex and, as many pension industry experts are already saying, it is likely solely to be a good way of allowing those who already have good pensions to save more.

Don’t let your heirs down

My wife and I are concerned about the potential inheritance tax on our estate, which is currently valued at 1.5m. We have three children and want them to benefit as much as possible on our death. What strategy can we adopt to minimise the risk of a big tax bill?


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