Standard Life has announced plans to revamp its retail international bond product in preparation for the RDR.
The provider will facilitate adviser charging either before or after a client’s money has been invested in the bond.
In addition, Standard Life is introducing a tiered product charge on the product, from 0.2 per cent to 0.8 per cent depending on the size of the investment (see below).
Standard Life international business development manager Ian Searle says: “We have developed a flexible range of adviser charging options, including the ability to take an initial charge from outside the retail international bond.
“If a client decides to pay for advice from within the bond, they should remember that these charges will count towards their 5 per cent annual tax deferred allowance.”
At the moment, the retail international bond is only available on Standard Life platforms.
Syndaxi Chartered Financial Planners managing director Robert Reid says: “The market for offshore bonds is very tight because there is a lot of competition. Unless Standard Life makes this product available on platforms other than their own they will not see much demand from advisers.”