Direct-offer stakeholder website pensionbusiness.com is offering IFAs
access to its online designation, admin and customer services in return for
50/50 split of commission.
The service allows intermediaries to outsource their stakeholder
designation and scheme population.
Pensionsbusiness.com is understood to be in talks with financial portals
to boost distribution of the service through the IFA channel.
The online service, which was established last year by DBS member
Nightingale Associates proprietor Michael Lockyer, offers access to
stakeholder plans from Norwich Union, Scottish Amicable, Clerical Medical,
Legal & General and Scottish Mutual through one back-office system.
Stakeholder schemes are set up and administered online while
pensionsbusiness.com call centre representatives can deal with enquiries
from potential and existing scheme members although they are not regulated
to give advice.
As the service is effectively offered by another IFA, the range of
services offered to intermediaries using the service sidesteps FSA rules on
indirect benefits. These have previously dogged stakeholder product
providers' attempts to offer extra services to IFAs.
Lockyer says: “We did a lot of IFA research to decide whether IFAs would
be prepared to pay for the service and decided the 50/50 split was more
appealing to advisers. We offer a complete fulfilment service, which
includes dealing with all the marketing material, and an 8am-8pm customer
service helpline for employers and employees. It is possible to set up
schemes for hundreds of employees in under half an hour.”