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Pru is first to move into the Sandler suite

Prudential is the first life office to declare its intention publicly to launch a product which will adhere to the Sandler standards, including the 1.5 per cent price cap.

The company, which unlike many of its rivals claims the new price cap is workable, says it will introduce a new-style with-profits offering in the third quarter of this year which will stick to the Sandler spec-ifications.

It will be aimed at IFAs&#39 clients rather than the target market for Sandler, with the Pru saying its low expense ratio allows it to continue paying “compet-itive commission levels”.

Pru UK chief executive Mark Wood says the charging structure will serve as a bonus to IFAs as they will be able to use it as part of their sales pitch to prospective clients.

The smoothed managed fund will fit into the medium-term savings product envisaged by the Sandler report, positioned between a short-term deposit-based account and the revised stakeholder pension.

Wood says: “I think that the price cap is right, the Government has thought long and hard about this. We will launch a product over the summer within the price cap targeted not to the Sandler market but fitting within the Sandler standards.”

John Scott & Partners investment manager Patrick Connelly says: “The reasoning makes sense for the Prudential. With-profits was and still is an incredibly important part of its business. It has been looking around for something to replace the inflows of with-profits business.”


Widows fails to make the grade with underwriting system

Protection specialist Life Policies Direct has given Scottish Widows a failing grade for its online underwriting systems, saying it is the least successful available. The broker has graded six online extranet submission and underwriting systems, concluding that Legal & General has the best online provision and Widows has the worst. The sites are graded out […]

IFAs say future looks grim for with-profits

IFAs cannot see a future for with-profits products. Sixty-one per cent of IFAs in The One Account/Money Marketing State of the IFA Nation poll say they are not optimistic about the continuing presence of with-profits pensions in the marketplace and 52 per cent say they are doubtful about the future of with-profits bonds. Of the […]

Schroders retail multi move with joint Fof

Schroders is aiming for the retail multi-manager market with an IFA version of the fund of funds operation it runs with Standard & Poor&#39s. Schroders, which runs around £547m through its internal Fof arm, plans to launch a balanced managed and an alpha managed product in the fourth quarter as it seeks to diversify away […]

UK leads Europe for fee-based financial advisers

The UK has the highest proportion of fee-based advisers in Europe, according to Eur-ope-wide IFA lobby group the Convention of Independent Financial Advisers. Cifa told a PIMS conference that 7 per cent of advisers in the UK are fee-based compared with 2-5 per cent in France, Benelux and Germany. IFAs say these figures are ironic, […]


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