View more on these topics

L&G and NU in clash over mass migration

‘Providers and advisers are caught between a rock and a hard place,’ says Altmann

Legal & General has slammed Norwich Union and other insurers that mass-contract in policyholders, accusing them of washing their hands of their basic responsibility.

But NU has hit back, saying other providers are being slow to contract in customers because they want to hang on to contracting-out rebates.

NU is one of the few firms in the market that has been mass- contracting in direct customers to S2P that fail to respond its correspondence. Scottish Widows also mass-contracts in but only for people over 50.

L&G pensions strategy director Adrian Boulding says the policy is a result of failed communication which could lead to misselling complaints.

He says: “Mass-contracting in is just a failure of customer communication and a case of companies trying to wash their hands of their basic responsibility to consumers. I am dead against this. It is down to companies to redouble their efforts to communicate with customers.

“If a customer is automatically contracted in without him knowing, he might well say he wants his tax-free cash and pension when he hits 50. He will want compensation.”

But Norwich Union head of pensions Iain Oliver says: “We are whiter than white on this. We have led the way, proactively contacting our clients and making them aware of all the options. We have contracted in direct customers even though this reduces the value we can derive from them. Some providers have been particularly slow to respond because there is a reasonable amount of money involved with contracting out rebates.”

Pension expert Ros Altmann says: “Providers and advisers are caught between a rock and a hard place. If they do not say anything, they will be accused of misselling and if they contract in en masse, the same thing will happen.”



Do you agree with Suffolk Life director of sales and marketing John Moret that commission on pension transfer business should be scrapped and that all pension transfer business should be fee-based? Chand Patel, BIMA Stuart Stojkovic, Sillars McCleod Andrew Seaman, F L Seaman & Co Martin Lumsden, AM & A Financial Consultants John Cope, David […]

Hogarth plans return to industry with new year venture

Former Bankhall joint chief executive Paul Hogarth is gearing up for a return to the industry. Hogarth’s restrictive covenant ends this week and he is looking at launching a venture in the new year. This is likely to focus on wraps or providing exit strategies for retiring advisers – the two areas that interest him […]

Yorkshire BS appoints new chair and vice-chair

Yorkshire Building Society has appointed Ed Anderson as chairman and Richard Davey as vice chairman.Anderson, who is currently vice chairman, will succeed Christopher Sheridan when he steps down at the end of the year.Anderson was appointed to the Board in May 2003 while Davey joined the board in September 2005.Sheridan says: “Since joining the Board […]

House mates

Annie Shaw reports on the growing trend for friends and strangers to band together to get a mortgage

Recording sickness absence cover - thumbnail

White paper — recording sickness absence

The latest figures from the Department for Work and Pensions illustrate that sickness absence is still a major cost to businesses, with an annual bill for sick pay and associated costs to employers of £9bn. This paper from Jelf Employee Benefits looks at the importance of recording sickness absence for any employee health strategy and how this can be carried out in an efficient manner to reduce absence, improve employee engagement and drive up profits.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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