Aviva cuts initial commission after changing personal pension plan schemes for RDR
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The insurance firm has announced plans to cut commission on its stakeholder pensions by nearly a quarter from a maximum of 3.36 per cent to 2.52 per cent.
An insurance firm has decided to cut initial commission on its stakeholder pensions by nearly a quarter after revamping its personal pension plan scheme and income in preparation for the retail distribution review (RDR).Aviva, the world's fifth largest insurer, has announced that it will reduce its stakeholder pension from a maximum of 3.36 per cent to 2.52 per cent.
In addition, the company revealed that its regular-premium commission will be reduced from a maximum of 20.4 per cent of Lautro rates plus uplift to a maximum of 15.36 per cent Lautro plus uplift.
An Aviva spokesperson explained that the decision has been prompted by recent changes to the RDR, which is designed to make individual advisers more personally accountable for their professional conduct.
The spokesperson added: "Following major competitors reducing commission and also leaving the stakeholder market, we have decided to reduce commission levels."
Meanwhile, Standard Life Insurance recently revealed strong performances from its self-invested personal pension SIPP in the last 12 months.
The Scottish insurer witnessed growth in its individual SIPP customer base and assets under administration, with the total number of accounts increasing by 27 per cent.
Further to this, there was a 36 per cent increase on SIPP assets under administration, a growth from £8.7 billion to £11.8 billion.
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Stakeholder pensions have been available from 6th April 2001 and are expected to play a prominent part in the savings arrangements people make for their retirement. ...
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