Mercury Life is introducing trail commission on single contributions to its personal pension plan st...
Mercury Life is introducing trail commission on single contributions to its personal pension plan starting on 1 October.
Roderic Rennison, retail director at Mercury Life said: "The 0.5% trail is payable half yearly on 1 September and 1 March. Trail commission is the most cost effective way of remunerating IFAs as long as there continues to be VAT on fees and until individuals can offset the cost of advice against tax as they can in other countries.
Mercury Life, which marks its tenth anniversary at the end of August, is also introducing enhanced transfer terms into its personal pension from other personal pensions or occupational schemes.
As a result of IFA feedback the group is introducing the revised version on 1 October with trail commission of 0.5.
The plan has no front load and offers a choice of 18 funds and features no penalties on exit, switching between the funds or early retirement.
There is a minimum of £25,000 into the Mercury Life Personal Pension Transfer plan and the usual £100 set up fee has been abolished. There will also be no monthly fees or policy fees imposed. Charges are the same as the group's personal pension plan with a 0.9% annual management charge with the exception of the 0.3% charge on the group's building society and deposit fund.
Following Zurich acquisition
Aviva has set out its strategy to launch an investments, savings and retirement division as it seeks to simplify its overall business.
Clients and advisers frustrated by red tape
More than 4,500 retail investors affected
Failure to engage