View more on these topics

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.

Recommended

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.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com