View more on these topics

&#39Demutualisation essential to raise capital for growth&#39

The need for capital has prompted Standard Life to move away from mutuality.

Standard says while its review has revealed a well-diversified portfolio of UK and international businesses, it will increasingly struggle for capital in the future and needs more access to capital from outside the company. The board intends to put a proposal for demutualisation to policyholders at its annual meeting in 2006.

With-profits policyholders who signed three-year waivers before March 31, 2004, will be able to have a share in any windfall. However, those buying policies after this date will not receive windfalls, nor will they be able to vote on the move.

The review update says that Standard intends to reposition its UK life and pension business to make it more profitable, with around 1,000 jobs to go by the end of this year as it moves to cut costs by 20 per cent.

It also intends to close its defined-benefit staff pension scheme to new entrants from November 16, 2004.

Standard has reaffirmed its commitment to IFAs, saying they will remain its core distribution channel but it adds that work has begun on developing relationships with other intermediaries and business partners.

Chief executive Sandy Crombie says: “To support our existing businesses and to realise the growth opportunities open to us as a diversified financial services group, we have concluded that we will require access to further external capital. While being a mutual has been a key part of Standard Life&#39s success in the past, we now believe that raising further capital by way of demutualisation is likely to be in the best interests of the company and its policyholders.”


AAM seals deal with Arlington

Aberdeen Asset Management has completed the long-awaited sale of its UK and European property arms to business solutions firm Arlington in a deal worth £50m. AAM, which pulled out of talks to sell the businesses to British Land last year, was thought to be seeking a price closer to £100m for Aberdeen Property Investors and […]

FSA sets out framework for electronic reporting

The FSA has introduced regulations that will compel IFAs to file regulatory returns electronically and provide detailed information about their firms on a six-monthly basis. The regulator will use the information about firms&#39 financial health and business activities to monitor compliance and identify trends in the sector. IFAs are split over the introduction of the […]

The strategy stays the same, says new Newton higher-income fund chief

Newton&#39s new higher-income fund manager says it will be investment business as usual for the £1.4bn portfolio following the departure of Clive Beagles to JO Hambro Capital Management. Tineke Frikkee, Beagles&#39 former deputy, says she has no plans to alter the fund, insisting that every stock is there because she has sanctioned its inclusion. She […]

Mortgage facts posted on the net

Moneyfacts is setting up an internet portal for IFAs that will offer an information service and online quotes. It will include a mortgage sourcing service, which the company says will cover all products from all lenders. The site will give users access to an area that lets them view full commission details, a mortgage compliance […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm