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.
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.a
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.”