IFAs should rethink commission or be left 'high and dry'

Using analysis from a report by Cazalet Consulting, Scottish Life is highlighting what it says are the inevitable consequences of the “stakeholder pricing model”, which operates with only an annual management charge (AMC), and which allows the policyholder to stop contributions or switch to another provider at any time without penalties. The stakeholder model only works if policyholders keep their plan going for most of its intended lifetime, but Alasdair Buchanan, group head of communications at Scottish Life, says the charging structure means there will almost always be an incentive for...