Scottish Widows plans to reduce the administrative burden on advisers with clients making regular contributions into its Retirement Account, IFAonline has learnt.
However, advisers say having to schedule a monthly request to Scottish Widows is proving to be too time consuming.
Harry Reilly, from IFA firm Gilliland Neilson Brown, says the choice of funds which can be accessed through the account is good and he has no complaints about costs. However, the need to submit monthly requests lets the product down.
"There is no ability to take a regular monthly contribution instruction other than for an existing range of Scottish Widows funds," he says.
"Clients wishing to make a regular contribution to any funds in the fund supermarket have to schedule a monthly request to Scottish Widows confirming what funds are to be purchased.
"The additional work to administer a regular premium for a client is too much," he adds.
Under new plans, Scottish Widows will allow regular contributions to be invested directly into specified funds within the fund supermarket.
"The design of our Retirement Account allows regular contributions to be invested in either our guided architecture range (of Scottish Widows funds and funds run by external managers) or in cash, for onward investment into the funds supermarket for example," says Iain McGowan, head of retirement income planning at Scottish Widows.
"This meets the objective of the significant majority of clients and advisers. However, we have seen some demand for regular premiums to be invested directly into the funds supermarket. We are currently working on a solution to that for implementation later this year."
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