Standard Life is revamping its investment bond proposition with the aim of making its charges more explicit.
Investors can choose between a stepped option which includes exit penalties or a level option without exit fees.
The changes apply to Standard Life's capital investment, distribution and with-profits bonds.
The stepped option includes a 1.5 per cent annual management charge in the first five years, falling to 1 per cent from year six, plus an exit penalty which decreases gradually from 8 per cent in year one to 2 per cent in year five.
Alternatively, the level option charges a 1 per cent AMC with no exit penalties.
Allocation rates, which are tiered depending on age and total premiums paid, range from 97 per cent to 102.5 per cent on the stepped option and from 92.75 per cent to 97 per cent on the level option.
There is no initial charge on either option.
Standard Life has also extended the investment choice on its capital investment bond with a range of external Sigma funds which carry an additional AMC of between 0.3 and 1 per cent.
Commission on both charging options is 6.25 per cent, boosted by 0.5 per cent from September 13 until March 11, 2005.
Marketing manager for savings and investment Iain McLeod says: “The feedback we are getting from IFAs so far is that this is what clients are looking for. They like the fund choice, which is efficient without being over-complicated, and the charging structure provides investors with a clear picture of what they will pay.”