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Origen’s £50,000 annuity move ‘takes Omo back 15 years’

Origen is to pass corporate annuity clients with pension funds worth under £50,000 to Legal & General and Partnership Assurance.

The firm, which recently won a three-year deal to provide advice to customers of L&G’s tied agents, plans to begin the process in March.

Origen will search the open market if requested by clients but the rest will be ushered either to L&G or Partnership, depending on health.

Annuity Exchange director Stuart Bayliss says the move takes the open market option’s progress back 15 years.

He says: “It is understandable for closed companies or providers to do these deals, at least for a while, but for advisers to do it is a disgrace.”

Hargreaves Lansdown pensions analyst Nigel Callaghan says: “The average pension pot is about £25,000, so double that is a pretty high starting point.

“Legal & General tends to be more competitive around the £10,000 mark. If it is now canvassing business up to £50,000, how competitive are their rates going to be?

“Origen is deemed to be a retirement specialist. I wonder how it can equate that with this particular initiative?”

An Origen spokesman says: “We have done a lot of research and found there is demand for this service for specific parts of our corporate book. But whole-of-market access would be available to anyone who wants it.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. What a disgrace!! So much for TCF. If these ‘clients’ are so worthless to Origen, they should not have taken them in the first place. Might I suggest that they write to them along the lines of ” You are too small for us to look after you, but you may secure better terms by looking at the whole annuity market. May we suggest that you try and find a more honourable IFA” Not likely to happen though.

  2. Origen have consistently reduced the service expected by their clients. This is the latest in a long line of service cuts. If they really do not require the burden of clients pass them to me.

  3. David Trenner - Intelligent Pensions 4th February 2010 at 1:35 pm

    I agree with Stuart Bayliss. The ABI don’t like the OMO because people transfer away from their members. The FSA does not understand that unless you tell people they can get 15% or more extra income for life they will not bother to move. Now we have an IFA firm which does not care about TCF.

    Because these are corporate clients Origen has no relationship with the fund holder, only with their employer, and they will no doubt claim that as the individuals are not customers they do not have to treat them fairly.

  4. This news comes after Origen were awarded the TCF award! Yet another step taken by Origen to tarnish their name in an already fragile IFA market.

    They seem to favour HNW individuals and don’t care about Joe Bloggs who has worked hard all their life and are more in need of advice at retirement.

    As they made so many good people redundant over the past 2 years, is this another sign of reducing their workforce?

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