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Hargreaves axes group Sipp manager in strategic shift

Hargreaves Lansdown group Sipp business development manager Dave Petchey has been made redundant as the firm admits it is changing its distribution strategy due to cost pressures.

Petchey was responsible for liaising with third party introducers including employee benefit consultants Watson Wyatt and Mercers.

Hargreaves Lansdown will not give details as to how the distribution strategy is changing or how it will impact the firm’s market share but insists it remains committed to the group Sipp market.

Head of pensions research Tom McPhail says: “We have just seen Axa pulling out of initial commission on group personal pensions.

“I think group pension distributors generally are experiencing pressures on front-end costs.

“That is being reflected in our approach to the distribution of group Sipps. We did have to look at the pricing of our distribution model.

He adds: “It is an evolving picture. But we are committed to the group Sipp market.”

McPhail says existing schemes will not be affected.

The firm is currently a competitive player in the group Sipp market, having secured schemes including Kingfisher.

Other players in the group Sipp sector include Standard Life and Legal & General.

Hargreaves posted a 10 per cent rise in revenue for the third quarter to March 31, 2009.


Diverse reaction

Many adviser firms are looking for new sources of income to help them through the economic downturn and it is not surprising that this trend is showing on the regulator’s radar as a potential TCF risk.


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