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&#39Pru has shown utter contempt for our clients&#39

The phones lit up at Money Marketing this week when Prudential told IFAs that not only would it be increasing critical-illness cover rates and pulling out of underwriting guaranteed business but that the move would affect the thousands of cases that are still in the pipeline awaiting processing.

Here is a small sample of the reactions from IFAs to what has been seen unanimously as a cynical move by the Pru.

“This action shows a cavalier approach to our customers&#39 need for real protection. Had the Pru simply closed to new business, no such accusation could be made but by treating all those who have already applied with contempt, they hammer yet another nail in the coffin of the life industry.”

Lifesearch spokesman Kevin Carr

“I have no confidence that the FSA will bother itself with this flagrant breach of client trust and am disappointed that the Prudential has shown utter contempt for our clients. In future, who would dare risk recommending the products of such a cynical firm to their clients?” Michael Philips proprietor Michael Both

“If ever a life company wanted to infuriate the industry and kill off all their IFA business, this is the way to go about it.”

Master Adviser Doug Brodie

“I think it is appalling. It is reneging on the terms of the contract. In 15 years in the industry, I don&#39t know of a company which has ever carried out business in this manner before.”

Alpha Financial Consultancy technical manager Moira Kennedy

“This is staggering and, as far as I know, unprecedented in the 20 years I have worked in the industry. It is disgraceful.”

Christopher Bradbury Professional Financial Planning principal Chris Bradbury “This is the most high-handed business practice I have ever encountered in this industry. It is absolutely despicable. They must have seen it coming, given the amount of business they were writing.”

Hearnes Independent Financial Services associate director Paul Russell “It is immoral, it is unethical but it is totally legal. But then they are a proprietary company, aren&#39t they? If they do not reverse this decision, the IFA market will show the Pru what we think about it. I will certainly never be using it again.”

Wilbury Financial Management partner Garry Spencer

“There will be a lot of IFAs who will be justifiably upset about this. The Pru should have seen this coming and managed it better. It will undoubtedly affect them in other product areas.”

Misys head of research Dale Tranter

“I am disgusted, not that they are pulling out of guaranteed rates but that they have done so with cases still in the pipeline.”

Portfolio Insurance Consultancy principAL Brian Lentz


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