View more on these topics

Overwhelming vote for Friends to demutualise

Friends Provident has become the latest mutual to get the go-ahead to demutualise after members voted massively in favour of its flotation proposal.

The life office is set to float on the Stock Exchange on July 9. Each member will be given at least 200 shares which could be worth between £470 and £540 on float. It is expecting only a small proportion to cash in their shares immediately.

The life office is looking for a big share of the stakeholder market but also has plans for new bond products.

Around 65 per cent of its 1.7 million members voted at the extraordinary general meeting last week and 97 per cent were in favour of the proposal to demutualise.

The proposal has to get court approval before the life office can issue a prospectus for the float. The prospectus is expected to be issued by June 12.

Scottish Provident is next in line for demutualisation, with members due to vote at its EGM on June 14. Members will receive fixed compensation of £500 for loss of membership rights and with-profits policyholders will get additional benefits.

Scottish Life members also voted overwhelmingly for demutualisation at its EGM in Edinburgh two weeks ago. It will now become the IFA arm of mutual office Royal London.

The office will look to strengthen its position in the IFA market and has not ruled out a move into protection.

Friends Provident chairman David Newbigging says: “We are delighted the demutualisation and flotation proposal has received such a resounding endorsement from our members. We now look forward to listing on the London Stock Exchange and having our members and customers share in our future as shareholders.”


IFA fined £15k in review

Leicester IFA The Pearce Murphy Partnership has been fined £15,000 by the PIA for pension misselling. The fine follows an investigation by the pension review monitoring department between September 1999 and February 2000 which identified several failings in the company. Its report cited a failure to correctly exclude cases from the pension review and issue […]

Scot Life claims adviser shortage threatens stakeholder

A shortage of financial advisers will hamper employers trying to meet the October 8 deadline for stakeholder compliance, according to Scottish Life head of pension strategy Steve Bee. Bee’s prediction follows a strict instruction from the FSA that only financial advisers are permitted to talk to groups of four or more employees about stakeholder.Bee believes […]

FSCS appoints new head of communications

The Financial Services Compensation Scheme has appointed Heather Tilsten, 32, as its new head of communications. Her remit includes raising awareness of the scheme among consumers and the industry. Part of her role will be to ensure the smooth transition of seven bodies, the Investors Compensation Scheme, the Building Society Investors Protection Scheme, the Deposit […]

Former Bank of England official and Guardian journalist replaces Johnson

A former Bank of England official and Guardian journalist Ruth Kelly has been appointed as Treasury economic secretary replacing Melanie Johnson.Kelly is one of several up and coming women promoted to junior ministerial positions. Kelly was formerly a parliamentary private secretary to Nick Brown when he was Agriculture Secretary. She is responsible for the financial […]

Welcome to The Brunner Investment Trust PLC

Welcome to the latest update for The Brunner Investment Trust PLC from the trust’s portfolio manager Lucy Macdonald. Market Review Global equities ratcheted higher throughout February, buoyed by optimism about global growth and corporate earnings. All regions advanced, although Japan tended to lag many other markets. In sector terms, healthcare, information technology, consumer staples and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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