Norwich & Peterborough Building Society has signed an agreement with Aviva to transfer its branch-based advisers to the provider.
News of the deal first emerged earlier this month.
The transfer will see N&P’s 21 IFAs becoming Aviva employees, with Aviva owning the advisers.
The advisers will be transferred under Transfer of Undertakings (Protection of Employment) regulations which gives them an ongoing guarantee of employment.
The transfer is effective from March 16, and follows a review of N&P’s branch-based financial advice service.
N&P head of retail operations Mike Sketch says the building society made the decision to transfer its advisers to Aviva due to the cost of providing advice to retail customers post RDR.
He says: “There will be wide-ranging and fundamental changes to the provision of financial advice coming out of the RDR. It was prudent for us to look at the way we provide financial advice to our customers in light of the expected increase in regulation, complexity and cost to us.
“Ensuring we continue to provide our customers with branch access to financial advice on investments and protection is important to us. We also think it is important that our customers have access to a provider with a great range of products and the scale to thrive in the new regulatory framework. Aviva ticks both of those boxes for us and our customers.”
Aviva UK Life distribution director Graham Boffey says: “Aviva has a strong partnerships distribution model and this deal builds on our distribution reach in a market in which we have considerable experience. We run similar distribution models with many other building societies. Aviva remains committed to a broad distribution strategy and is well positioned for the changes arising from RDR.”
Aviva has similar introducer agreements in place with Chelsea Building Society, Stroud & Swindon Building Society, Principality Building Society, and Coventry Building Society.
N&P is writing to all customers who have used its financial advice service to inform them about what is happening.
Liabilities for the advice given before the transfer will stay with N&P.
The mutual has admitted it could face liabilities as high as £50m over its advice to thousands of clients to invest in Keydata products. N&P is also facing a possible class action of up to 400 Financial Ombudsman Service complaints over Keydata.
N&P’s IFAs were previously tied to Norwich Union before becoming IFAs in 2003.