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Standard Sipp gives choice on payment

Standard Life is overhauling its Sipp contract with a new commission structure and eight new fund links.

The new fund links are Deutsche Asset Management managed portfolio, Newton managed fund, Gartmore selected European, Threadneedle American select growth, Fidelity South-east Asia, Fidelity special situations as well as Standard Life global selector and UK smaller companies.

The new commission structure will allow IFAs to stipulate in more detail how much initial commission they require without reducing allocation.

It also allows IFAs to trade specific amounts of initial commission for differing levels of trail. The annual charge based on 3 per cent initial commission and 0.5 per cent trail will be 1.55 per cent.

Standard says a by-product of the structure is that it complies with the FSA&#39s depolarisation proposals as it requires IFAs to determine the commission terms with the client at designated points in the sales process.

Senior technical manager John Lawson says: “The product simplifies the whole sales process by helping IFAs and clients agree the best method for paying for advice.”

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