Adviser News - Issue 117
Changes to single premium/transfers commission rate for Individual Stakeholder and Personal Pension 2000
Following a review of commission rates payable across our range of personal pension plans we’ve decided to bring the rates available under our Stakeholder and Personal Pension 2000 products more closely in line with our Portfolio Plus pension range.
This will result in a small reduction to the rate of initial commission payable for single premiums/transfer payments with terms of 15 years or more, on our Individual Stakeholder and Individual Personal Pension 2000 products.
The new rates are as follows:
Single premium/transfer payment initial commission rates
|
Term |
Current basic commission rates |
Basic commission rates from 2 March 2009 |
|---|---|---|
|
The only change is for terms of 15 years or more where the basic rate is reducing from 3.5% to 3.0%. The basic initial commission rates for terms less than 15 years are not changing. Override rates will apply as normal. |
||
|
5 - <10 years |
2.0% |
2.0% |
|
10 - <15 years |
2.5% |
2.5% |
|
15+ years |
3.5% |
3.0% |
This change will take effect on 2 March 2009 and will apply to new business, including increments to existing plans.
At the same time we are reviewing the override rates we offer on these products and if your agency with us is affected we will be contacting you separately about this.
There are no changes to other available commission styles and rates at this time.
Illustrations
Illustrations are available via the normal routes and will reflect the new commission rate from 2 March 2009.
Due to the transitional period both the old and new styles will show on the system between 2 March 2009 and 3 April 2009.
Any illustrations produced with effect from 2 March 2009 must be based on the new style. Any illustration dated 2 March 2009 onwards using the old style will be rejected and you will be asked to re-quote.
Transitional arrangements
As it will not be possible to produce illustrations on the new terms until 2 March 2009 there will be a transitional period from 2 March 2009 until 3 April 2009.
For affected cases:
- Cases accompanied by illustrations dated pre 2 March, which complete by the 3 April 2009 will be set up on the old terms. “Completed” is defined as receipt by Legal & General of all requirements including a fully completed application form and the single contribution or transfer payment.
- Business accompanied by an illustration dated 2 March 2009 onwards will be set up on the new terms.
- All business completed after 3 April 2009 will be on the new terms.
After 3 April 2009, for cases still in the pipeline with pre 2 March 2009 illustrations (old terms):
- If commission is being sacrificed the servicing team will contact you and ask you to re-quote using the new terms as this will affect your client’s Annual Management Charge. The case will not be processed until your confirmation of the new terms is received.
- If commission is not being sacrificed there is no requirement to re-disclose as your client’s Annual Management Charge will remain the same. The post sales illustration will disclose the amended amount of commission payable to you.
Contact details
For further information about this change, please call your usual Legal & General representative.
This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private investors or any other persons.
