Aegon will carefully monitor the commission being taken as part of its new flexible adviser remuneration option for annuities to ensure the offer is not abused.
The option allows advisers to take commission on annuities of up to 3% after consultation with clients. Commission on the products is often around the 1% mark which means many advisers are unable to offer advice for clients with small pension pots at this level. Aegon believes the flexible option will help close the advice gap on annuities and promote the open market option. However, concerns have been raised the new charging structure could lead to mis-selling claims if big commissions are taken on larger pension pots. IFA Phil Castle from Financial Escape, says: “This may go some way ...
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