Legal & General and NPI are trying to set up affinity stakeholder products specifically for intermed...
Legal & General and NPI are trying to set up affinity stakeholder products specifically for intermediaries to sell to their individual client bases, writes Leo Bland
Adrian Boulding, welfare strategy director at Legal & General, said that the group is planning the product with a wide range of IFAs, from corporate pension specialists to nationals and network members as well as general insurance brokers
Under the plans, an intermediary firm would be able to offer the same stakeholder plan to all its corporate clients
Stephen Ingledew, head of corporate pensions at NPI, added that there will also be significant business opportunities for IFAs who have existing SSAS and Sipp business with directors of companies. He said that under the stakeholder regime these types of clients will have to establish pension arran-gements for their employees if these are not already in place. Ingledew added that it is likely that director clients will look to their existing IFAs to provide this sort of arrangement, noting that NPI is discussing plans with IFAs to offer affinity type stakeholder arrangements to meet this demand
Ingledew estimated there are 300 to 400 IFAs specialising in corporate pensions in the UK and that these brokers are set to see a significant increase in business with the introduction of stakeholder pensions in April 2001. With the Government pro-posing a maximum 1% annual management charge for stakeholder, insurers believe this will only leave enough room for remuneration on the basis of group advice to firms
NPI has commissioned research from 200 IFAs on their views of stakeholder pensions and the possible impacts on their business. The most upbeat were corporate pension specialist advisers with 59% positive on the impact of stakeholder before April 2001 and 60% positive after April 2001. The most negative were networks with 45% negative on the impact before and after April 2001. The research was conducted by independent research specialists Martin Hamblin
Industry Voice: Scottish Widows pension expert Robert Cochran and economist Andrew Scott discuss the future of employment and income, in episode three of Scottish Widows' podcast series.
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