Standard Life is planning to withdraw its conventional with-profits policy from the end of this month and will offer new customers unitised with-profits products instead.

The company says the main reason behind the move is to offer products which are easier to understand and more transparent. The new products, which will be unveiled next month, will also have a lower charging structure.

In addition, customers will have the option of investing part of their funds in a guaranteed with-profits product while putting the remainder into a managed fund.

Standard Life also points out that investors in both the old and new products will have exactly the same participation rights in the company though it insists it will remain a mutual company.

Last year, there was a rush of funds into the conventional with-profit product as carpet-baggers, keen to benefit in the event of demutualisation, rushed to invest. This forced the company, which has constantly reaffirmed its commitment to mutuality, to increase the minimum premium for the contract to £50 per month to discourage such speculation.