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ScotAm scraps appointed reps in IFA-only switch

Scottish Amicable is axing its entire appointed representative division of 192 firms and about 400 advisers to focus on the IFA sector.

From October 31, appoin-ted rep partnership agreements will terminate, leaving ScotAm selling its products solely through IFAs.

It says the move follows a review of its intermediary operations and the decision to focus on specific profitable products rather than be a mass-market provider.

It claims the appointed rep channel is best suited to selling a broad range of products and does not fit with its plans which include targeting the over-45 age group with annuities and bonds.

It is also looking at the non-regulated market and is having discussions about how to develop its market share in this sector.

This move follows ScotAm&#39s decision to ditch initial commission on new regular pension business and the appointment by Prudential last month of Tony Kempster as distribution director for its intermediary business, covering ScotAm.

ScotAm is advising appointed reps on options available to them over the next two months and is encouraging them to talk to IFA networks, including Bankhall.

Interlink network, which has about 200 members, says it expects to attract a number of the appointed reps looking to become IFAs and join a smaller network.

Kempster says: “Going forward, we are applying our resources where potential to generate profitable sales and to add value for customers, their advisers and our shareholders is greatest. This will see us working closely with IFAs and developing prod-ucts and the necessary support to increase our already powerful presence in our core markets.”

Bankhall director Tony Murrell says: “We are delighted to be able to help as it is a tremendous endorsement of our position and the role of IFAs in the marketplace.”

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