Royal London has signed a £4m deal with IFA portal provider Exchange FS to develop phone and internet channels with a view to setting up multi-ties.
Royal London will build a call centre and an internet portal which will provide a multi-channel distribution system to sell stakeholder pensions, investment products and protection products.
The move follows Prudential's decision to focus on internet and phone customer servicing instead of direct sales. Royal London, however, has said it is totally committed to its direct-sales channel of 1,200 and says the new systems will be developed alongside it.
Initially, only Royal London products will be sold via the phone and internet channel but the company will be looking at offering other providers' products if multi-ties are permitted.
This is The Exchange's first big contract after revising its strategy to focus on the business-to-business arena and ditching its failing consumer site Moneyextra.
The Exchange's share price had hit an all-time low of 13p at the end of last year but the shares are now trading at around 21p.
Royal London product group manager Gareth Evans says: “Multi-ties offer some interesting opportunities and we need to take advantage of them. We will currently only sell Royal London products but we would not rule out offering other providers' products.”