Zurich's investment brand Sterling has added its name to the list of firms now offering factory gate priced versions of its products.
The company has introduced a new flexible version of its investment bond, “designed to allow flexible customer agreed remuneration”.
Zurich already offers factory gate models across its entire pre and post retirement pensions offerings.
Prudential launched a similar product a fortnight ago while Winterthur – formerly Provident Life – has used a factory gate system on its pension products since 1992. Clerical Medical is also in the factory gate arena.
Sterling’s new version will sit alongside the existing three charging structures of the bond - High Allocation, Standard and No Exit penalty versions.
It says as the base structure has no commission, it will be particularly attractive to fee-charging IFAs and those already on a trail based business model.
It adds once commission levels have been agreed with the customer, they can be paid for by initial charge, establishment charge, or fund based charge.
In addition, advisers will also be able to request quotes and apply on-line through Zurich’s extranet, which has been updated.
Sterling has also developed the Flexible Terms Modeller, a user-friendly tool to enable advisers to model the different charges and remuneration available within the flexible version, and choose the most relevant solution to meet both the customer’s and adviser’s needs.
Paul Wright, Sterling’s investment management director, says: “We recognise that there is more than one distribution model that meets the needs of customers and distributors.
“We aim to make it as easy as possible for advisers to make the right choices for their customers and themselves, and to have access to the wide range of benefits that the Sterling Bond offers.
“Based on feedback from advisers, the ability to quote and apply for the Sterling Bond on Zurich’s updated extranet will be ‘the icing on the cake’.”
The flexible version will start at 100% allocation and a tiered, fund-based charge starting at 0.225%.
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