Its key retail products, including Active Money Sipp, Retail Portfolio Bond and FundZone will be covered by the new model later this year and as part of the changes mutual fund manager rebates will be passed back to clients.
The firm said the adviser charging options had been designed to "help financial advisers manage charging and commission inflows, breaking it down into the relevant types of remuneration at client level".
The model will offer options for initial, ad hoc and ongoing charges on either a flat or percentage of assets basis and on Standard Life Wrap the adviser will have the ability to set adviser charges at individual product level or across the whole portfolio.
Graeme Bold, director of UK retail RDR for the group, said: "The introduction of adviser charging to replace commission on new business is the cornerstone of the FSA’s RDR agenda. We’ve strongly believed in the need for the cost of advice to be transparent for a number of years and introduced customer agreed remuneration structures on our key retail products as early as 2004.
"We see the transition to adviser charging as a unique opportunity to send a signal of change to consumers, removing any perceived bias created by providers’ influence over remuneration structures. It allows the amount, timing and funding of any adviser charges to be a matter purely for the adviser and their clients. As a result, advisers need the flexibility to charge clients for their services in a way that suits them both."
Standard Life said some of its older products would not be covered by the new adviser charging model, since it had decided to invest in the changes on products that are in high demand.
Ahead of RDR it said it was urging advisers to start planning the move to an adviser charging model now.
To support this, the firm is allowing advisers to agree charging terms in advance of its "go-live date".
"Many transactions have now been defined as ‘advice events’, which will trigger the switch off of trail commission on legacy assets. So advisers need to get a plan in place now to ensure that their income stream is protected and they are able to continue to meet their clients’ interests through provision of on-going advice.
"Where it makes sense to do so, transitioning clients onto adviser charging sooner rather than later is the best way to ensure this, and we are working with advisers to support them in this process," Bold explained.
Further details of the model and its implementation can be found on the firm’s website.