View more on these topics

N&P to transfer advisers to Aviva

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.

Recommended

30

Advice under RDR too costly for banks

It will not be financially viable for banks to offer advice to the mass market under the RDR, according to research by Ernst & Young. E&Y has compiled a paper on the impact of the RDR, which is due to be published next week. It says banks would have to charge £200 an hour for […]

1

TenetLime looks at single-tie deal for protection

Tenet’s mortgage, protection and general insurance arm, Tenet-Lime, is holding talks about offering a single-tie protection proposition for its members. TenetLime says the proposition comes in response to member feedback. Addressing the Tenet conference, TenetLime managing director Gemma Harle said: “We have heard from you that you would like further choice in respect of the […]

Property principles

Property is one of the mainstays of diversified portfolios but despite the brief period of popularity it had in early 2010, it remains riddled with problems and negative sentiment. The latter is not necessarily from a fund manager’s point of view but from advisers, as evidenced by the significant drop-offs in sales. But has the […]

House prices fall 0.2% in December

House prices in England and Wales fell 0.2 per cent in December, meaning the average house price now stands at £163,814, according to data from the Land Registry. On an annual basis, prices increased by 1.5 per cent from £161,373 to its current level. Five regions in England and Wales experienced increases in their average […]

Japan 2017 Outlook: Abenomics 2.0

By Chris Taylor, head of Japanese Equities, Neptune Abe, having reinforced his political position domestically, will most likely hold off any further major policy enactments until after president Trump has settled into the White House and enacted some of his own. Then a relaunch of the Three Arrows programme is likely, or Abenomics 2.0, including […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Another RDR victim? The omens are not good.

    No matter how the FSA tries to square the circle on this one the end result is clearly going to be less choice for the average client in the UK.

    I have seen figures of less that 2% return on capital for some bank/ building society advisers. If this is accurate then the market is going to go through a rapid change in direction…. and not in a good way.

Leave a comment