Adviser  >  Individual  >  Remuneration

Remuneration

Pension Portfolio gives your clients the flexibility they want. And we've designed its remuneration package to meet your needs, too.

Our personal pension product Pension Portfolio offers a flexible menu of commission options allowing you to tailor the remuneration according to the work you do for each client.

Transparent commission

In depth

Download the following PDF guides for more information:

Get more information

For more information on Pension Portfolio, request a call back from your usual Scottish Life representative.

We were one of the first providers to adopt a factory gate pricing model on our pension plans with a clear distinction between, and disclosure of, our product charges and the cost of advice.

Our 'Adviser Charging' remuneration model is called Financial Adviser's Fee (FAF) and allows you to agree a fee with your clients and have the cost deducted directly from the plan. FAF is broadly consistent with the proposals in the FSA's Retail Distribution Review. For regular payments, FAF involves an extremely limited form of factoring in the first year.

How our RDR-ready remuneration option works

  • With FAF you can take up to 75% of the first year's regular payments and up to 7.5% of any single and transfer payments.

  • The cost of advice is agreed by you and your client and is then deducted directly from the client's plan at the outset for single payments and transfers and over the first 12 months for regular payments.

  • Because the cost is kept separate from our management charge the ongoing plan charges are kept low - offering the potential for higher projected fund values in the long term.

With FAF, everyone's a winner

Benefits for you

  • Easy to explain to clients
  • Cost of advice uncoupled from ongoing product costs
  • No clawback for single and transfer payments and only 12 months for regular payments
  • Can be combined with fund based renewal commission if you are providing an ongoing advice service to clients.

Benefits for your clients

  • Transparency – the cost of advice is clear
  • Tax efficiency – tax relief on regular and single payments reduces net cost to client1
  • Low ongoing product charges leading to potentially higher fund values
  • No need to pay a fee up-front by cheque.

Other commission options available in the Core Investments options

It is also possible to select from a range of alternative commission options which are paid for through the annual management charge.

Income Release

If your client is using Income Release from outset, the commission options are restricted to FAF and fund based commission. For plans where Income Release is not being used immediately it is possible to build in additional commission when Income Release starts, as long as this is disclosed at the outset of the Pension Portfolio.

Self Investments

If your client is self investing their Pension Portfolio you can receive a fee based on the value of the Self Investments. The cost of this is deducted directly from the client’s Pension Portfolio Bank Account.

  1. References to taxation are based on our understanding of current taxation law and practice and may be affected by future changes.

    For professional advisers only

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