AA Financial Services is re-entering the IFA market with plans to build the UK's number one IFA brand through a new company AAIFA.
It aims to build the brand by targeting the AA's 11 million members.
The first phase will see AAIFA entering the annuity, Isa, term insurance and investment bond markets by the second quarter of this year on an execution-only basis initially. It hopes to be providing advice on these products and across a broader range of products by the second half of the year.
AAIFA has started a recruitment drive by advertising seven key positions, including annuity manager and annuity adviser, all based in AAFS Cardiff offices.
The second-phase development will see it partner a range of financial services providers and it will join forces with a leading IFA brand to offer independent advice.
AAIFA says its market research clearly illustrates an opening for a “trusted brand” in the market.
AA Financial Services chief executive Kerry Richardson says: “We will not offer advice in the first stage but will consider IFA partners with a powerful advice brand later on this year. People are crying out for a source of personal finance they can trust.”
Torquil Clark pensions development manager Tom McPhail says: “In terms of annuities, it is a big market getting bigger. They must have a big database making it easy to identify and mailshot people coming up to their 60th or 65th birthday.”