Standard Life has criticised what it calls the "oversimplification" that standard Personal Retirement Savings Accounts (PRSAs) are better for consumers than non-standard PRSAs.
A new report by consultants Technical Guidance states that most standard PRSAs either do not provide any remuneration to intermediaries for lower contribution levels, or provide reduced commissions.
Of the 19 standard PRSAs reviewed in the report, 11 pay no intermediary remuneration at all, with only five standard PRSAs paying some commission to brokers at all contribution levels.
Mr Michael Craig, finance and actuarial director of Standard Life, said this meant most standard PRSA investors would make one of the most important investment decisions of their lives without receiving independent advice.
"By limiting advice, standard PRSA investors are being encouraged to not only fly solo but fly blind as well," he said.
Mr Craig questioned whether the best interests of consumers were being served by steering them away from independent advice, which he said did not come for free.
Standard Life holds licences for three PRSAs, all non-standard. This allows the company to offer with-profit funds as an option for PRSA investors.
With-profits are not allowed under standard PRSAs, which have charges capped at 5 per cent on contributions and a 1 per cent annual management charge.
Unlike other non-standard products, which have higher annual management charges, Standard Life's non-standard PRSAs conform to the standard model of five plus one. They also currently include a "mutuality rebate" on the annual management charge of 0.5 per cent.
The mutual company, which sells through the broker network, has been able to build in a fee for broker advice at charges no higher than under a standard PRSA by reducing its margins, it said. "What we're saying is that it may be the case that non-standard PRSAs have the same or better charges while offering a wider range of investment options," Mr Craig said.
Standard Life argues that a charging structure of five plus one should be promoted as the benchmark for PRSAs, rather than a division between standard and non-standard.
Under rules introduced by the Irish Financial Services Regulatory Authority (IFSRA), PRSA providers and intermediaries are not allowed to sell non-standard PRSAs to customers without a signed declaration from both parties that all the risks have been pointed out.
This means brokers selling Standard Life products will have to send customers a letter advising them that they may be paying higher charges under the non-standard PRSA, when, in fact, they are not.
One broker said recently he suspected intermediaries wary of IFSRA's monitoring of non-standard sales would hesitate to sell Standard Life products in order to avoid confusion.
Mr Craig agreed that without legislation capping the charges on its PRSAs, there was no guarantee they might not change in the future. But he said Standard Life had no track record of bringing people in on "a headline deal" and then raising the price of a product.
