View more on these topics

Standard consultants push final opportunity

IFAs are attacking Standard Life broker consultants for going all out to push its high up-front commission-paying pension plans before switching to stakeholder-style products.

A sales aid, leaked to Money Marketing, has been sent to IFAs under the headline: “Do not miss this opportunity!!!”

It highlights how IFAs can still earn full initial Lautro and renewal commission with no clawback on older-style sch emes despite Standard offering an alternative stakeholder-friendly scheme.

The document claims: “This is a fantastic opportunity for you…and your clients.” It also encourages pension transfer as a way to earn more money.

Standard was recently slammed by rivals for encouraging IFAs to sell high-commission products. It denied at the time it was having an effective closing-down sale.

The company says this is not a sanctioned communication and is purely local act ivity. It says the contents are out of line with its stance.

But IFAs and life offices are aware Standard has been using these tactics. Torquil Clark pensions development manager Tom McPhail says: “Standard Life is clearly giving IFAs an incentive to sell business now and take up-front commission. The individual gets stakeholder terms and the IFA gets commission so they both win. But it is with-profits policyholders who pay.”

Standard Life assistant general manager (marketing) Colin Ledlie says: “We do not agree with our products being pushed in this way. It is not in line with the company&#39s stance. We have got attractive terms at the moment for the end-customer as we manage the transition into stakeholder.”

Recommended

Legal & General launch new smooth move

LEGAL and General have launched a new version of their SmoothMove service, which helps mortgage policy customers who encounter problems whilst moving house.The improved service offers solutions to moving day problems such as organizing a replacement removal van and arranging the emergency purchase of items lost or damaged in transit.SmoothMove which is available free to […]

iShares – iFTSE TMT

Tuesday, 7th November 2000.Type: Exchange traded fund.Aim: Growth by investing in technology, media and telecoms companies.Minimum investment: Negotiable with stockbrokers.Maximum investment: None.Investment split: Media 35 per cent, telecoms 25 per cent, IT 26 per cent, software and computer services 14 per cent.Place of registration: Dublin.Isa link: Yes.Pep transfers: Yes.Charges: Annual 0.5 per cent.Commission: None.Tel: 020 […]

Polarisation – politics and pressure points

IFAs should brace themselves. By the time you receive this issue of Money Marketing, some industry sources believe the Government will have announced its decision on polarisation.To the best of our knowledge, the FSA has passed its recommendation to the Treasury.It has left the publication to the Government but, by handing responsibility to spin-doctors, it […]

High Street Home Loans – 5.49/5.69 Per Cent Two Year Fixed

Tuesday, 7th November 2000.Fixed term: Two years.Fixed rate: Up to 75 per cent of valuation 5.49 per cent, 76-95 per cent of valuation 5.69 per cent.Minimum loan: £25,001.Maximum loan: Up to 95 per cent of valuation subject to a maximum of £500,000.Income multiples: Up to 75 per cent of valuation 3.75 times principal income plus […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment