Axa has stopped selling its capital guarantee products in the UK, citing regulation around unit-linked investments as one of the reasons behind the move.
Axa confirmed it would pull its Secure Advantage and Secure Advantage+ products in email to advisers yesterday.
Existing policy holders will get to keep their guarantees. For new business where an illustration has already been run, Axa said it would accept cases that are received up to and including 15 November 2016, but online illustrations will be immediately withdrawn from Axa’s adviser website.
Any pipeline business that is not processed by 6 February 2017 will not be completed.
Axa Life Europe confirmed it will also stop selling the the Secure Advantage range in France.
An Axa spokesman says: “The decision to stop the distribution of Secure Advantage has been taken following a detailed strategic review of the market, and the economic and regulatory factors affecting the sale of unit-linked investments in the UK and France.”
In July, Axa Life Invest UK managing director Simon Smallcombe commented in Money Marketing that capital guarantees were “ripe for innovation”.
Smallcombe said the products would not have a place in retirement planning if they continued to be expensive, long-term and “low in equity content”.
He said: “Indeed the capital guarantees which have been available on the market over the last two years don’t offer the end consumer the flexibility and protection that is wanted and needed going forward.”