View more on these topics

Annuity warning for Resolution investors

Hargreaves Lansdown head of pensions research Tom McPhail says Resolution’s pension policyholders could end up with a poor deal on annuities if the life company’s merger with Friends Provident goes through.

One of the proposals of the £8.4bn merger between Resolution and Friends is that Resolution pension investors would be offered Friends Provident annuities but McPhail says its rates are not competitive.

He says product providers should be looking to offer investors the best rates on the market rather than agreeing single-provider deals which offer their customers uncompetitive rates.

McPhail says: “One of the proposed synergies is that Resolution investors would be offered Friends Provident annuity rates. This is not good news for Resolution investors because Friends Provident annuity rates are rarely the best in the market. Perhaps the Resolution policyholders should make sure they own some shares as well?”

Norwest Consulting principal Harry Katz says: “I understand McPhail’s concerns, provided you make the assumption that people will take the option offered to them. Policyholders should be asking an IFA to exercise their open market option.”

Although Resolution and Friends have agreed a merger, several companies, including Axa, Zurich and private equity group JC Flowers, have been linked with 11th-hour bids for Friends while Pearl and Standard Life have also been heavily linked with Resolution.


Focus on profits pays off for Pru

Prudential’s profits surged by 39 per cent in the first half of this year despite the restructuring of its UK arm which resulted in sales falling by a fifth.Interim profits were £2.08bn compared with £1.47bn in the first half of 2006.New business premiums for the group rose by 12 per cent on an annual premium […]

One rep beyond

Scottish Equitable faces a £700,000 payout after a rep was deemed to have wrongly given advice in a client meeting. John Lappin examines the implications for the adviser-provider relationship

MPs call for Government to consult on life assurance unclaimed assets

The Treasury select committee has recommended the Government consults with the insurance industry about future involvement of life assurance assets in the unclaimed assets scheme.In its report, Unclaimed Assets Within the Financial System, the group of MPs acknowledge not enough research has been done to recommend the inclusion of other assets outside of bank and […]

Most advisers reject PFS knitting stance

A straw poll found that 58 per cent of advisers disagreed with the Personal Finance Society’s stance that it should “stick to its knitting” and keep out of controversial debates surrounding the RDR and 42 per cent agreed.

Pension savings-2015

Pension tax relief: parked (for the moment)

The national news agenda has been dominated by pension issues this month. For those that missed it (and there cannot have been many given that this was the lead story in spoken and written media), the Chancellor announced a decision to make no decision on pension tax relief in his 16 March 2016 Budget speech. To […]


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