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Standard slashes individual stakeholder commission

Standard Life has slashed its individual stakeholder commission, introducing minimum qualifying premiums and terms and scrapping intermediary single-premium and transfer remuneration.

The move follows recent announcements from Norwich Union and Scottish Equitable and reflects pro-viders’ growing lack of enthusiasm for the product.

Standard will only pay commission on individual regular-premium business where the monthly cont-ribution is £100 or over and the term to normal retirement date is at least 10 years.

Group schemes with 50 or more members will be individually priced, based on factors such as average salary and staff turnover.

Standard will only take on smaller group schemes in exceptional circumstan-ces and only fund-based, level or nil commission is likely to be offered.

Standard’s commission on group transfer business will be cut to nil although loyalty commission is available on the proviso that the money stays with Standard for at least three years.

Marketing director Barry O’Dwyer says: “The stakeholder model is broken so we have built a Sipp and we expect most transfer business to go into that.”

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