Prudential claims the recent concerns raised by the Faculty and Institute of Actuaries over the sale and marketing of with-profits bonds will get rid of the “sharks” from the marketplace.
As the UK's biggest with-profits bond provider, the Pru believes it will gain market share after publication of the F&IA letter in June. It believes the bad publicity will force IFAs and consumers to go to stronger and bigger providers.
Prudential Intermediary Division product manager Campbell Boyd says ulti-mately it is a good thing for business and the letter, if anything, should discourage “sharks” in the marketplace.
Boyd says: “As one of the companies that has not been tarnished by this issue, we believe we will get a larger share of the marketplace. IFAs will want to steer clients away from controversial bonds to protect their own reputations.”
IFA network Countrywide investment analyst Martin Page says it is advising members to select bonds from financially strong providers. He says a good name is not enough and they should not deal with companies rated A or below.
Roger Sanders Associates account manager Peter Jones says: “Stronger companies, such as the Pru, have the majority of their assets invested in equity and this is what IFAs are looking for.”