Standard Life is launching a new section 32 contract just three months after it withdrew its old one because it was not compliant with Raising Standards.
The company has constructed an entirely new s32 contract that meets the requirements of Raising Standards. It will aim the product at deferred pension scheme members in poorly performing funds with high charges rather than active members of executive personal pensions and contracted-in money-purchase schemes.
Standard's s32 offers access to 67 funds and carries a level-charging structure. If no commission is taken, the annual charge is 1 per cent but rises to 1.3 per cent if full commission is taken. Initial commission starts at 2 per cent for terms of up to three years, rising to 6.5 per cent for 25 years and above.
Standard was among the first companies to offer s32 contracts in the 1980s when GMP obligations were met through the withprofits fund. The current product will be withdrawn after A-Day.
Standard Life senior technical manager John Lawson says: “Now that the Finance Act has confirmed that there is still a place for s32 in the runup to A-Day, we have decided to build a new product quickly. Our s32 is for deferred members in poorly performing funds.”