Norwich Union is raising commission on personal pensions from 18 July, citing FSA proposals to scrap the RU64 rule.
The provider says it will also increase the price cap on its modified stakeholder product to 1.5% by the end of the year. RU64, formerly known as FSA COB 5.3.16, has been blamed for cutting access to financial advice for low to mid-income earners by forcing advisers to basically benchmark all personal pensions against stakeholder ones. Following depolarisation the situation has been complicated by advisers still being bound by the rule even where they may not have a stakeholder pension in their ranges. NU states removal of the rule will stimulate provision of advice and result in b...
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