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Widows begins the build up to stakeholder

Scottish Widows is offering a pre-stakeholder product to help it build brand recognition in the run-up to stakeholder&#39s launch in April 2000.

The key feature of the product is the ability for the IFA to vary the annual charge between 0.65 and 1.5 per cent, depending on the level of advice and whether a stakeholder-compliant plan is required.

Other features are 100 per cent allocation, no bid/offer spread, no policy fee, no switching charges, life cover and waiver of premium options, and access to external fund managers.

The product will run alongside Widows&#39 current pension offerings and can be used for group personal pensions, group money-purchase plans and group AVCs.

Widows says IFAs are writing a lot of business with employers who want to set up a plan that will allow them to be exempt from any further requirements under stakeholder legislation.

The life office says it is hoping to take between 10 and 15 per cent of the market once stakeholder begins.

Senior pensions marketing manager Colin Watt says: “This latest initiative from Scottish Widows allows IFAs to design a scheme with an annual charge to suit both them and their clients. It is clear that our new product range is among the most competitive in the market.”

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