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Standard says internal transfer commission will help retain business

Standard Life says the introduction of up to 5 per cent commission on internal transfers between its personal pension and its Sipp is designed to give it a “fighting chance” of retaining business that was moving to other providers anyway.

The revelation follows the firm’s recent announcement that it has put aside £79m to cover pensions policy lapses.
But Standard Life product manager Alistair Hardie denies the move represents a rearguard action against leakage and says it merely gives the firm “a fighting chance” of keeping business that was moving anyway.
He also says the introduction of commission is not an attempt to drive more business into its Sipp.
Rival Sipp provider AJ Bell says it alone has ploughed £42m over the last three months in leaked Standard Life business into its Sipp.
Bell says: “The move is designed purely to stop the migration of PP money, which up until recently has been retained on the promise of a demutualisation bonus.”
Hardie says: “All we are doing is saying the standard terms are available for internal transfers just as for business that moves into our Sipp from outside. We are not using commission to drive internal transfers to Sipp.”

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