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Towry Law supports end of commission on GPPs
Towry Law has welcomed recent announcements from providers that they will no longer pay initial commissions to advisers selling their group personal pension (GPP) products.
Axa, Friends Provident and Prudential have all recently made announcements to this affect.
Towry Law said the move was a positive one, as it believes commission payments create a potential conflict of interest between the employer and their wealth adviser, which may lead to employers receiving inappropriate corporate advice.
Andy Cowan, head of private and corporate clients at Towry Law, which works on a fee-basis, added: "This is great news for employers as it should lead to them receiving better quality, transparent and impartial advice on their employee benefits.
"The corporate pensions industry is largely focused on selling pension schemes to earn commissions, rather than on providing client-focused solutions.
"At Towry Law we believe that the only way employers can be sure of receiving independent pension advice is on a fee basis and we welcome any moves by the insurance industry that facilitate this."
