M&E picks five for pension

Network M&E has finalised a stakeholder panel of five, with CGNU, Friends Provident, Scottish Equitable, Scottish Mutual and Standard Life winning places.

Pension development manager Stuart Fairburn says the companies were chosen for the marketing support they can give members as well as for technology compatibility.

He insists that commission “did not come into it”.

Fairburn says the list of “preferred pension advisers” is not set in stone. Life offices may be added to the panel or replaced.

But he points out that M&E does not favour a big panel because life offices are reluctant to provide marketing support when they have a lot of competition.

He says other networks have drawn up panels of between four and seven companies and that CGNU is unique because it has made the panels in “eight out of 10” cases.

Misys was the first network to announce its stakeholder panel in May, with CGNU, Clerical Medical, Scottish Widows among the companies which made the final selection.

Fairburn says: “We chose the life offices on the basis of the commitment that they can show members. Commission does not come into it. Any commission deals that are struck now cannot be guaranteed.”