View more on these topics

Norwich Union to outsource its wrap to Scottish Friendly

Norwich Union is to wash its hands of the administration of its loss making Lifetime wrap and will migrate clients onto Scottish Friendly’s platform.

As part of its results, published today, the provider says it has entered into a strategic partnership with Scottish Friendly to migrate clients onto the society’s existing wrap platform and to run Lifetime’s back-office administration.

NU says the transfer is expected to complete by early 2009 at which point clients and advisers will see a significantly improved service.

Scottish Friendly already provide the back office support for the Nucleus wrap.

According to the results, Lifetime cost the provider £23m for the six months to June 30, 2008.

Norwich Union Life chief executive Mark Hodges says: “This is a key partnership which forms part of our overall strategy to simplify operations, reduce costs and focus on new opportunities for growth.

“We will be making significant investments in our IT infrastructure over the course of the next three to five years to recognise the changing needs of the mass affluent customer who wants to do business with us online. This will focus on delivering more online solutions and product features.”

Lifetime managing director Toby Strauss says: “This agreement will give customers an improved service and will enable us to achieve greater flexibility and scale to meet the long-term needs of this market.”

“We understand that this decision causes uncertainty for our staff. However it is too early to give an indication of the likely number of redundancies. Our priority will be to keep employees fully informed throughout this process and we will do everything we can to minimise the impact of this decision. We have built up valuable experience and knowledge in this area and will seek to minimise any impact through natural turnover, not filling vacancies and redeployment where possible.”

Financial Technology Research Centre director Ian McKenna says: “This is a sensible move to put an end to the uncertainty and allows NU to take a step back and see how the wrap market develops. Aviva is not short of money so I would not rule out a future acquisition of a wrap.

“The question for advisers will be whether NU will allow platform-to-platform transfers without a re-registration exit fee for those that do not want to migrate to Scottish Friendly. They will also want to know what scale of transfers out Scottish Friendly can cope with and on what timescale.”

Recommended

Clerical error

Have you ever been in the situation where you really wanted to say something that you knew was going to seem incredibly rude but then finally succumbed and let rip?

Ricky Okey

In every financial market, there are some companies that fare better than others. Abbey for Intermediaries managing director Ricky Okey is upbeat about the business’s prospects despite the mortgage market facing its biggest crisis since the early 1990s crash. “We are lending and we have an appetite to lend,” says Okey.

Inheritance tax and estate planning – exemptions and reliefs

By Kim Jarvis, technical manager with Canada Life’s ican Technical Services Team In this article we look at the main exemptions and reliefs that are available on death. Within the article, spouse also means civil partner.   Nil-rate band Under current rules, any part of the estate that falls within the available nil-rate band (NRB), […]

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