Adviser fears over Swip bonus ban
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Advisers have raised concerns about investing with Scottish Widows Investment Partnership as they believe that Government bonus restrictions could have an impact on fund manager recruitment.
In the Treasury restructuring plans for Royal Bank of Scotland and Lloyds, the banks agreed to restrict bonus payments, which advisers fear could affect Lloyds-owned Swip’s ability to recruit and retain talented fund managers.
Hargreaves Lansdown senior analyst Meera Patel says: “It is worrying as it may be the case that the firm struggles to recruit the right talent and the chances are they will lose staff who may become unhappy with the situation. It is sad that everyone is being punished for an issue that has developed from a number of top players on the banking side.”
Whitechurch Securities managing director Gavin Haynes says: “The worry is it restricts talent and, if a manager comes through with strong performance, what will Swip do to tie them into the business? It is a question we would ask before investing with them.”
A Swip spokeswoman says: “Swip has a compensation package that is competitive and does not inhibit our ability to attract and retain key talent. This is evident in the recent appointments within our fixed-income team and further key senior appointments we will be making in the coming weeks.”
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Readers' comments (1)
You must be joking | 11 Nov 2009 6:29 pm
This is a bit of a non-story really.
When did SWIP ever have a manager that they would want to tie in by offering bonuses?
Not since Lloyds took them over surely!
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