Standard Life to pay commission on personal pension

Standard Life is offering advisers commission worth up to 25% of their clients’ first year of payments as part of its active money personal pension.

The insurer, which re-entered the personal pension market with the launch of the active money plan today, is offering a range of commission options for advisers, despite the impending RDR ban.

Details of the commission options available to advisers show an IFA can take a maximum initial commission of 25% of the client's first year of payments, plus level commission of 2.5% with fund-based renewal commission of 1%.

Standard Life is also offering fee options for advisers who do not take commission, with the same 25% cap on upfront fees.

Advisers will also be able to claim up to 5% commission on single payments and transfers.

The active money personal pension has fund charges of between 0.5% and 2%, with additional costs for some funds. Switching is currently free but Standard Life reserves the make charges in the future.

Standard Life has launched the personal pension to sit alongside its existing SIPP, with the aim of making transferring assets to a SIPP easy as customers become wealthier.

The insurer says its new commission options are in line with helping advisers create sustainable businesses.

Mark Polson, Head of Customer Management said: "The value destructing and unsustainable commission deals that characterised the personal pension market have finally largely given way.

"The Retail Distribution Review is also crystallising the market in terms of IFAs' value propositions to their clients and as a result we can see an attractive, clearly defined and sustainable business opportunity."