The firm unveiled the product at its Connect Day in London last week. It is awaiting approval by HM Revenue & Customs before going on the platform.
Head of marketing Malcolm Murray said: “With the removal of some of the tax incentives on pensions and the proposed increase in tax rates, the qualifying savings plan will be attractive to financial advisers planning potential sources of future income replacement for clients.”
He said that the qualifying savings plan is a cheaper and more transparent alternative to a maximum investment plan, which Murray says is a tarnished product associated with high charges and commission.
The new regular-premium 10-year plan will offer open architecture with direct purchase of funds. There will be no mirror funds, capital units or surrender penalties.
There is a £100 setting-up charge and £150 underwriting fee and Transact’s normal initial, switching and annual charges apply.
Murray said this is the first regular-premium policy to be offered within a wrap context.
He said: “This is a deliberate attempt to put clear blue water between the two products. The QSP is 21st century, the Mip is 20th century which has passed its use-by date.”
Independent wrap consultant Stan Kirk says: “This is a Mip without the high commissions. Well fantastic, that is exactly what the market is waiting for.”