Standard Life says it intends to fight the industry's corner on commission and prove it is in the best interests of the consumer in front of the Treasury select committee next week.
Chief executive Sandy Crombie will appear before MPs alongside chief executives from rival insurers Aviva, Legal & General and Prudential as part of the committee's inquiry into long-term savings.
Standard says it will present a robust defence of commission as the best option for consumers. Managing director (marketing) Simon Douglas says it will argue that introducing fees will raise costs for the consumer and will see pro-ducts front-loaded with charges.
He believes abolishing commission will lead to fewer people paying for professional advice, leading to a reduction in the amount and quality of savings among the population.
Douglas wants to see an improved commission system which is seen to be working in the consumer's interest.
Although he says many in the industry believe problems still exist with the menu in its current format, Douglas thinks it will go some way towards addressing the way consumers engage with their finances.
Douglas says: “The concern is that people outside the industry are starting to believe that commission is not in the consumer's interest and we need to do something to change that.”