View more on these topics

Providers struggle with legacy and distribution ahead of RDR

Providers are still wrestling with legacy business and choosing the right distribution channels ahead of RDR implementation.

Speaking at a Perspective Financial Group roundtable on the RDR, Scottish Widows head of distribution development Robert Kerr said providers face a difficult task in assessing which legacy products will facilitate top-ups and adviser charging.

Kerr said: “Our RDR project has been a bit like nailing jelly to the wall at times. The biggest challenge providers face is going to be how much of their legacy book they add flexible charging structures to. That will be different for every provider and it will not be an easy task.”

Kerr said Scottish Widows has to consider the treatment of 268 legacy products.

He added: “Providers will wrestle with that for a few months to come. It certainly will not all be there on R-Day.”

JP Morgan head of UK marketing Keith Evins said providers are having to second-guess how many advisers will survive post-RDR, whether they will be investment specialists or outsource, and assess the dominance of other distribution channels.

Evins said: “Longer term, what is vexing us as a provider and maybe some of our competitors is just how we structure our business to align it to the market post-RDR. We and others are looking at other distribution channels that have not really been prevalent in the market for some time. It is the business alignment issues that are going to affect us beyond 2013.”



Tenet finance director quits

Tenet Group finance director Graeham Sampson has quit the firm. Sampson joined the firm in April 2011 but has resigned to pursue other career opportunities. Tenet says it is currently looking for a replacement. Tenet executive chairman Martin Greenwood says: “Graeham Sampson has decided to step down from his role as group finance director to […]

Govt business bank would cost £40bn, says think tank

The Government would need to borrow an extra £40bn to fund the initial costs of setting up a state-backed business bank, according to the Institute for Public Policy Research. Earlier this month, business secretary Vince Cable pledged to set up a state-backed lender to boost lending for SMEs. Chancellor George Osborne has also backed the […]

Connaught administrator says it is too early to determine losses

Connaught Asset Management administrator Peter Hollis says it is too early to determine the full extent of the losses within the asset manager’s Ucis funds or indicate when investor monies will be recovered. Last week, Money Marketing revealed CAM appointed Hollis of KPF Advisory as administrator on 18 September, the same day Tiuta Plc’s directors […]

Henderson’s Pattullo: Central bank promises are inflection point for markets

Henderson head of retail fixed income John Pattullo says recent actions by central bankers Ben Bernanke and Mario Draghi are an inflection for global bond yields. Pattullo – who has added more risk to his stable of funds – says the decisions made by both the US and European banks to support quantitative easing has […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment