The change comes in the wake of Close, a leading mass market rival to Concept, reducing its own product fees to what were believed to be – for a few days at least – the cheapest available.
The new charges on the Skandia/Concept Group Aurora Quantum product are a set-up fee of £645 and annual administration charge of £845. Both were previously £995.
Close last week cut its establishment charge to £750 and annual administration fee to £1,000. Combined, this figure is now £260 more than that of the equivalent new Skandia/Concept cost.
Close does, however, offer a product in which the annual and establishment fees are each £300. In this product the investment choices are limited to Close’s own funds.
The tie-up between Skandia and Concept was originally agreed just over a year ago. The new fee structure forms as part of an extension of the contract.
Phil Oxenham, marketing manager at Skandia International, said: “We have seen a tremendous reception for Concept’s Aurora Quantum proposition during its first 12 months in the QROPS market.
“The average number of pension contracts we are seeing transferring into a QROPS is three per customer, which just shows how easy it can be to consolidate retirement planning solutions to make life easier."
Roger Berry, managing director for Concept Group, said: “By refining our new business processes further and forging strong relationships with key UK pension providers, we have been able to identify further efficiencies and are pleased to be able to pass this benefit on to our new customers.”
