Scottish Amicable is ditching initial commisssion on all new regular premium pensions business saying the practice is no longer sustainable.
Initial commission will be phased out across its pensions product range over the next two to three months.
Initial plus renewal and indemnified commission levels will also be affected. Renewal commission on its own will not change.
Scot Am says it shifting its market position towards single premium, transfer and fee-based business.
Pru Intermediary Business distribution director Tony Kempster says: “The long-term view is that initial commission based pensions business cannot be sustained in current market conditions. Providers and advisers alike must adopt a sensible and sustainable approach to profitability.”