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Canada Life salesforce in move to Lighthouse

Canada Life has struck a deal to transfer its direct salesforce of 198 registered individuals to national IFA and network group Lighthouse.

The move will potentially increase the company&#39s tally of RIs to 600 from around 400 if all the salesforce take up the opportunity to move to Lighthouse.

No money changed hands in the deal. Instead, Light-house will pay for training, fees and infrastructure for the salesforce for up to a year.

As part of the deal, Canada Life has the option of buying a discounted 5 per cent stake in the group the next year.

It is the first deal of this type for both companies.

Canada Life and Light-house have negotiated a block transfer with the FSA which will see the salespeople who take up the offer operating as IFAs by the start of November under Lighthouse&#39s Berkeley Wodehouse brand.

The deal was revealed to the salesforce at a conference in Birmingham on Monday.

Canada Life says it had hoped to develop its salesforce into a multi-tied network but could not wait until 2004 for the new rules.

It also has a new strategy, focusing on offshore, group risk and annuities. The company is also set to launch an onshore multi-manager investment bond this week. It says this product would not have been suitable for its salesforce.

Lighthouse joint managing director Malcolm Streatfield says: “We are absolutely del-ighted to give the salesforce a route forward to independence. We fully expect the vast majority of the salesforce to come over to us on the strength of the amount of phone calls we have taken since the announcement.”

Canada Life vice-president Ian Gilmore says: “We cannot be all things to all people. We hope to work together with Lighthouse over the long term.

“We wanted to come to a swift arrangement to allow the salesforce to maintain their earnings.”

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