Standard Life is considering the launch of a further stakeholder product to enable it to offer dif...
Standard Life is considering the launch of a further stakeholder product to enable it to offer different default investment options to different employers.
The mutual does not offer employers a choice of default options, arguing that this could lead to accusations of mis-selling should one such fund perform worse than another. Companies using Standard Life as their provider are obliged to use the with profits fund.
Barry O'Dwyer, marketing development manager at Standard Life, said that due to demand from customers, the mutual is seeking to find a way to offer different companies different defaults without bringing up the problem of who is advising on which default to pick.
To avoid the problem, Standard Life is considering launching another product so that if a company wants to have a different default fund it can choose another product. The new product would be different in terms of charging structure to avoid being seen as too similar to the existing stakeholder scheme.
Norwich Union has only one default fund but employers are entitled to choose a different nominated fund if they think it is more appropriate for their employees. Iain Buckle, head of individual pensions at Norwich Union, said: 'There could be room for complaint from scheme members if an employer decides to opt for a scheme without advice but we do not take this type of business direct.'
Clerical Medical allows employers to elect different nominated default options for different types of staff. Nigel Stammers, pensions strategy manager at the group, said: 'Different people have varying needs so it is important that some level of consideration is given to what type of fund is most appropriate for them.'
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