Standard Life is the latest provider to unveil a consultancy charging structure that includes options currently not permitted under FSA guidance.
Most of the major group pensions providers have now unveiled consultancy charge structures that permit a percentage of fund value option, even though the FSA says consultancy charges that reduce employer and employee contributions below auto-enrolment requirements are not permitted.
The ABI is understood to be lobbying the FSA to soften its position on the issue.
Standard says its new charging options have been introduced to complement Standard Life’s existing fee based structure, which was introduced in 2004.
Charging options include initial and ongoing consultancy charges, for both regular and single premium business, that can be taken either as a flat fee or percentage of funds.
Quotations on a consultancy charging basis will be available from 15 October 2012 for schemes starting in 2013.
A Consultancy Charging modeller and template client agreement will also be available on 15 October.
Ann Flynn, head of workplace marketing, Standard Life says: “With the introduction of auto-enrolment it is essential employers are able to access quality advice to help them put in place a workplace pension scheme that will ultimately deliver good outcomes for their employees in retirement. So we’ve enhanced our already well established, transparent charging models to provide a remuneration structure that offers a flexible range of options to advisers and employers in post-RDR world.”
Jamie Jenkins, head of workplace strategy, Standard Life says: “The nature of the RDR means it is the advisers who ultimately decide on the consultancy charge. The lateness of the discussion around this presents challenges for some advisers working out their business models.”