Prudential has insisted that its deal to allow Santander UK advisers to sell Pru investment bonds will not detract from its IFA distribution.
Pru signed an exclusive deal with Santander this week, allowing the bank to distribute Pru’s flexible investment plan range of funds for an initial five-year period from 2011. This will make the Pru bonds available to Santander’s 25 million UK customers in 1,300 branches.
Prudential distribution director Andy Curran says the move provides an additional distribution channel for the bonds but adds: “There is no reason to expect any changes in the IFA market.”
Curran says Santander customers who invest in the bonds will have the same charging structures as intermediated investors.
He adds that a separate account management team will be established, so existing distribution channels are not affected.
Highclere Financial Services partner Alan Lakey says Pru is the latest in a line of life companies to broaden its distribution channels and “try to ride all the horses in the race”.