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Standard cuts commission for pensions

Standard Life is scaling back commission on its group and executive personal pensions, stakeholder and small self-administered schemes.

It is removing guaranteed commission on group personal pension flex and stakeholder for schemes of fewer than 20 lives averaging less than £100 a month member average premiums.

The company says GPP schemes of fewer than 20 lives will now only be payable dependent on the quality of the scheme. Standard previously had no set minimum scheme size for commission.

Schemes with over 100 lives or £250,000 scheme annual premium will be individually priced, with the most favourable terms being offered to high-quality schemes defined by a number of factors, including average annual contribution per member and persistency.

Commission will be paid on contracted-in money-purchase schemes will only pay commission if Standard deems the size of premiums merits it. Standard&#39s previous minimum for Cimps was five lives averaging £1,000 a year.

Accelerated fund-based commission is being removed for all new EPP and Ssas policies, including new entrants to existing schemes.

Standard terms are being abolished for occupational schemes and all future business must be written using Standard&#39s joining and payment methods.

Standard says all commission and business process changes will take effect from July 16 and any new business quoted thereafter will reflect the changes.

Business based on quotes dated on or before July 16 will be accepted by Standard if it is received at its head office by August 27.

It says changes to the commission structure bring it in line with its competitors and are necessary to allow it to remain competitive.

IFA sales director Paul Matthews says: “These changes, together with recent announcements like Sigma, will create a modern range of pensions solutions offering competitive charges and excellent investment options backed by first-class service.”

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