Standard Life has confirmed it will switch off trail payments on 12 of its legacy products when clients carry out certain non-advised transactions on their investments.
Standard will switch off trail if a client increases or restarts regular payments, adds or changes their indexation or makes ad hoc payments to a policy.
Standard says the products affected represent less than 5 per cent of its commission book. It says allowing trail to continue on these products would be “prohibitively expensive and complex”.
The policies affected by the move are the Personal Pension Plan, Personal Pension One, Personal Pension Flex, Flexible Pension Plan, Individual Stakeholder Pension, Section 32, Individual Buy Out Plan, Pension Fund Withdrawal Plan, Executive Pension Plan, Small Self-administered Scheme, Section 226 and the Free Standing Additional Voluntary Contributions.
Standard says these products have not been actively promoted for at least 10 years.
Standard Life head of RDR proposition and implementation Ross Easton says: “Because implementing the legacy rules in full across all our products and systems would have been prohibitively expensive and complex, in a very narrow number of circumstances we are switching off trail commission where a transaction is carried out by a customer.
“The most common transactions carried out by customers on our life and pension products, such as switching funds, do not result in trail commission being switched off.”