Provider Standard Life is introducing lower commissions to head off "unsustainable" payments in light of what it sees as industry moves "away from generic pricing, with terms increasingly being driven by the nature and quality of the business".
The mutual will in future demand minimum premiums and minimum terms for IFAs to qualify for commissions. Besides lower commissions generally, the company will also remove level and single premium initial commission. IFAs may also see money lost if their clients stop paying premiums for whatever reason as Standard Life says it “will introduce commission reclaim for regular premiums that stop.” Because of expectations of a boost in its SIPP business, Standard Life says it will look into the possibility of a SIPP contract paying initial commission for regular premiums. The company...
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