View more on these topics

Abbey Life clients left in limbo for advice

Up to 1.7 million Abbey Life policyholders have been left in advice limbo after the company&#39s acquisition by Allied Dunbar, accordingto IFAs.

Following the Dunbar takeover in February, policyholders were informed in jointly signed letters from Abbey Life and Allied Dunbar that Abbey was no longer able to give them financial advice on existing policies and investments.

The letter said: “With effect from 1 February 2000, your financial adviser is not allowed to provide you with any advice, including advice on Abbey Life products.

Abbey Life says it is still responsible for the policies and will keep policyholders informed of progress but itcannot give advice.

IFAs say the move has left policyholders with no one to turn to for advice on issues such as maturing policies.

The letter continued: “However, your financial adviser may have been offered a position with Allied Dunbar…..if accepted, he or she will shortly be able to give you general financial advice as well as detailed advice on Allied Dunbar products and services. He or she will not be able to give you specific advice on your existing Abbey Life policies.”

Abbey Life had over 1,400 advisers. Around half of these advisers took up positions with Allied Dunbar and have been retrained.

Troy French & Partners senior partner Peter French says: “It does worry me there are so many companies closed to new business that the policyholders are effectively being denied advice unless it is specifically pointed out to them they will need to see an IFA for advice.”

Abbey Life corporate liaison manager Rob Thomas says: “The letter we sent out was pretty poor really. It was an unfortunate consequence of the transfer that clients were left in this situation. The letter did not explain it very well.”


The next generation of potential high-flyers is being targeted by Royal & SunAlliance International&#39s student accommodation fund

The fund is an offshore open ended investment company, designed for growth by investing in accommodation for students. The product will invest in an existing fund managed by Brandeaux managers, which purchases existing university halls of residence and leases them back to the universities.Royal & SunAlliance International claims that, with many universities now pressed for […]

German bank merger talks collapse

Merger talks between German banks Commerzbank and Dresdner Bank have collapsed, ending six weeks of speculation that the two would get into bed together. Both have a significant presence in the UK, Commerzbank owns Jupiter Asset Management and Dresdner has its investment arm, Dresdner RCM Global. The news comes as a particularly hard blow to […]

Clerical Medical announces addition to Japanese Team

Clerical Medical announces an addition to its Japanese Equities Team. Stephen Adams, who has six years experience managing Japanese and Asia/Pacific markets, joins the team as of the end of July. He comes from Norwich Union where he helped manage its Japanese portfolio. Adams will replace Sharon Dodgson, who is leaving to join fund manager […]

Axa plan may start wave of orphan fund payouts

Plans by Axa to pay former Axa Equity & Law with-profits policyholders £400 windfalls from orphan assets could herald a wave of payouts by life offices.Both CGNU and Prudential confirm they are considering following Axa&#39s lead.Research by Schroder estimates life offices have around £44bn in orphan assets. This flies in the face of the commonly […]


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