Annuity row breaks out over Partnership outsourcing deal
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Just Retirement has castigated Partnership’s decision to team up with Origen in an annuity outsourcing deal.
Outgoing chief executive Mike Fuller says the arrangement is a “retrograde step” for enhanced annuity provider Partnership.
Fuller says: “I think Partnership has got this completely wrong. It is not logical from a treating customers fairly viewpoint, a retail distribution review viewpoint or any other viewpoint. It is going to get left high and dry. It is a retrograde step and the commission has to be paid for by somebody.
“We need to make it easier for the client and te IFA to get to the end result cost-effectively and that is where we are going to take the market this year.”
Partnership managing director of retirement Andrew Megson says: “We are striving to ensure people with small funds are able to access products provided by companies other than the one they have their pension with. This means consumers with small pension funds are able to access the enhanced annuity market in a way which would otherwise not be available to them.”
Origen head of retirement strategy Rob Tinsley says: “We are trying to increase the number of people who take up the Omo and ensure that they see an improvement in their income and access to advice where they want it.”
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Readers' comments (1)
David Trenner - Intelligent Pensions | 26 Feb 2010 8:07 am
On most of the cases I have looked at Partnership's rates are lower than those from Just. This deal looks to be a good way for them to get business on inferior rates.
Given the commission rates quoted it looks like a good deal for Origen too.
So, good for the Provider, good for the Adviser ... and who cares about the Customer??
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