View more on these topics

CIS quits WP endowments to focus on &#39modern products&#39

CIS is quitting the with-profits endowments savings plan market, saying it is looking to provide new with-profits products which are better suited to the post-Sandler environment.

At the peak of the product&#39s popularity in 1996, CIS sold about 100,000 with-profits endowment plans in the first six month. However, in the first half of this year, the company sold only 19,000 plans.

It withdrew from mortgage endowment sales two years ago.

Many other providers still offer endowments but few actively promote them.

CIS says the move reflects product evolution. It will continue to offer with-profits bonds and an insurance Isa and ringfenced stakeholder with-profits plans.

General manager (marketing) Martin Clarke says: “We want to focus on our modern products which meet the changing needs of our customers and will stay the course in a post-Sandler world. We strongly believe that smoothed returns have a future to play in encouraging people to save.”

Scottish Life head of communications Alasdair Buch-anan says: “Not too many people would be launching new endowments but it does not cost much to stay in the market and we are getting reasonable business volumes.”

Franklins Financial Ser-vices partner Neil Franklin says: “It is a dead product and I am surprised that there are still companies offering them. It is a short-term world now and endowments are competing with Isas, which have lower charges and are more tax-efficient.”

Recommended

Urgent action is needed on pension shortfall

I am very pleased to see some sane comment appearing in the pages of your publication concerning 1 per cent charged products. Judging by the fact that some perfectly reputable companies have already withdrawn from this market and others seem to be following weekly, I entirely agree with you that it is about time that […]

No lock-in on Abbey discounts

Abbey National is offering a new range of discounted and fixed mortgages with no extended tie-ins. The mortgages include a 1.15 per cent two-year discount loan giving a rate of 3.85 per cent. The rate is available on loans up to 75 per cent loan to value, is open to first-time buyers, movers and remortgage […]

Two equity funds mark DAM rebranding

Deutsche Asset Management is setting up two aggressive equity funds, each investing in only 25 stocks, to mark its rebranding as DWS Investments. DWS UK opportunities and DWS European opportunities are the first two funds to be offered in the UK under the DWS brand, which translates fully as the investment specialist in German. The […]

Mortgages plc appoints two new sales managers

Specialist lender Mortgages plc has appointed two senior sales people as part of the restructure of its sales and marketing team. Mark Harrison and Bryn Hancock take up the new positions of regional managers for the north and south of the UK respectively. Harrison joins from Bank of Ireland where he was corporate lending manager […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment