Pru pledges to stick by IFAs
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Prudential has insisted that its deal to allow Santander UK advisers to sell Pru investment bonds will not detract from its IFA distribution.
Pru signed an exclusive deal with Santander this week, allowing the bank to distribute Pru’s flexible investment plan range of funds for an initial five-year period from 2011. This will make the Pru bonds available to Santander’s 25 million UK customers in 1,300 branches.
Prudential distribution director Andy Curran says the move provides an additional distribution channel for the bonds but adds: “There is no reason to expect any changes in the IFA market.”
Curran says Santander customers who invest in the bonds will have the same charging structures as intermediated investors.
He adds that a separate account management team will be established, so existing distribution channels are not affected.
Highclere Financial Services partner Alan Lakey says Pru is the latest in a line of life companies to broaden its distribution channels and “try to ride all the horses in the race”.
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Readers' comments (4)
Evan Owen | 9 Sep 2010 4:01 pm
Might be more profitable to bring back the "Man from the Pru" so he can sell to all those orphan clients.
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Evan Owen | 9 Sep 2010 4:03 pm
Forgot about this:
"the bonds will have the same charging structures as intermediated investors"
Guess what will NOT be the same.
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Simon Kershaw | 10 Sep 2010 9:00 am
I look forward to seeing the first KFI. Any advance on 8% initial with no trail?
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Julian Stevens | 15 Sep 2010 8:17 pm
Like many other IFA's to whom I have spoken, the Prudential is generally dreadful to try to do business with and I use them only when no alternative option is available.
As Prudential are so willing to confirm no difference between the charging structure of the product to be made available via Santander, perhaps they could also confirm that the commssion to paid will be the same as well.
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