Support services firm SimplyBiz has launched a non-advised annuity referral service with Partnership and Annuity Line.
The firm says the service, which went live to SimplyBiz members on 1 July, was developed following demand for a basic solution for clients with small and medium annuity pots and for those who were “not comfortable paying an explicit adviser charge”. Non-advised services are unaffected by the RDR commission ban.
Partnership and online broker Annuity Line provide conventional and enhanced annuities through the offering with enhanced service guarantees.
SimplyBiz shares the income on referrals with the two providers. It says the average commission for advisers will be 1-1.5 per cent. The firms say there are no other payments between the two providers and SimplyBiz for the service.
SimplyBiz joint managing director Matt Timmins says: “There has been an increase in demand for a referral service for annuity business, particularly for small pots where clients may find it unpalatable to pay an adviser charge which looks disproportionate to their fund size and advisers are unable to reduce their standard fee due to the paperwork and risk. This service will ensure more customers are able to go through the open-market option route.”
Quainton Hills Financial Planning director Gordon Bowden says: “Anything that helps clients shop around and use the open-market option is to be encouraged but I still think the best way to make the most of your retirement pot is to get independent advice.”
Money Marketing revealed in May that Openwork’s controversial single-tie annuity deal with Partnership could see the multi-tied national paid more than £15m.