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ScotAm group pensions shut as Pru opts for fee-based IFAs

Prudential is shutting the door on Scottish Amicable&#39s group pension business to focus on sales through fee-based IFAs and consulting actuaries.

All ScotAm&#39s group personal pension, group stakeholder and group money-purchase schemes will be closed to new business from the end of September in favour of Pru&#39s group contracts.

ScotAm&#39s range of individual pensions will stay open but will be rebranded Prudential by the end of the year. New individual pension products are in the pipeline.

Existing schemes will still be open for new members, increments and single contributions or transfers.

ScotAm stopped offering initial commission on all regular-premium pension business in August 2001.

Pru axed the Scottish Amicable brand name last November. Sales of individual pensions, which includes GPPs, fell by 43 per cent in the first quarter of 2002.

Hargreaves Lansdown pensions development manager Danny Cox says: “I thought Scottish Amicable was bought so Pru could develop in the pension market. It is a very strange strategy to now pull out. Pru is only good at very large schemes. What did it get out of buying ScotAm?”

Prudential spokesman Darragh Leeson says: “We are real-igning our pension distribution across the group market and shifting focus on to fee-based IFAs and consulting actuaries. Pru bought ScotAm to get distribution in the IFA market. Our commitment to the IFA market is consistent.”

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