At least two IFA networks are offering ex-Prudential sales staff special deals in a bid to woo them away from national IFA Inter-Alliance.
Letters obtained by Money Marketing reveal that Bankhall and Positive Solutions have negotiated reduced network rates for Pru employees who were made redundant last month following the company's decision to close its direct-sales arm.
The networks' packages are designed to give salespeople alternatives to joining Inter-Alliance which signed a deal with the Pru to purchase the salesforce.
Bankhall is reducing its average charge of 25 per cent of turnover for individuals who sign up to its nursery network Investment Strategies to 15 per cent for gro-ups of Prudential salespeople until June 30.
Positive Solutions is telling Pru salespeople they will receive details of its “special Prudential offer” if they attend one of its seminars which also explain the firm's philosophy to help people decide if it is right for them.
As part of encouraging advisers to join Inter-Alliance, Pru sales director John Prout says restrictive coven-ants are being eased and the salespeople can take 50 customers with them subject to data protection and regulatory and client approval.
The Pru is also allowing people to start training with Inter-Alliance during their “gardening leave”.
Bankhall director Tony Murrell says: “We have been approached by a number of Pru salespeople who would like to set up their own IFA rather than join an established practice. It is not unusual to offer commercial terms to large groups of people.”
Positive Solutions spokes-man Alasdair Mitchell says: “We are creating a level playing field so people do not lose out financially by not joining Inter-Alliance.”