Britannic could be put under intense scrutiny to get its funds back on the IFA radar after Britannia Building Society, which previously only distributed Britannic funds, signed a deal to sell Axa Sun Life investments as well.
Cockerill believes Britannic will have to rise to the challenge of increased competition or see a fall-off in sales. It will face tough competition as Axa is also planning a restructure of its investment funds to boost business to intermediaries.
Cockerill says: “The change really has to put the pressure on Britannic and that could be a good thing. I think we have seen in financial services that increased competition can lead to increased quality. Britannic have dropped off the radar a bit in the last few years while Axa have a very comprehensive range.”
Britannic head of public relations Jackie Fraser says: “I can see why they would want to take a look at their distribution options. We are not surprised that they are taking advantage of depolarisation and increased their products. It is difficult to quantify how this will affect sales for us. It could be it could open up new opportunities for us but it remains to be seen.”