Friends should choose non-commission option

letter

Surely reducing commission increases administration costs

Julian Stevens, WDS Bristol Sir, Reading of Friends Provident's decision to reduce commission on all its individual pension contracts to just 10% of the old Lautro scale, one has to ask why it simply has not declared itself to be a non-commission office as far as pensions are concerned. Surely 10% of Lautro is more costly to administer than it can ever be worth. What will really stick in the gullet of many advisers though, is that these new terms are almost certain to apply to all the business written with Friends Provident back in the 1990s, thus rendering them worthless to us unless w...