View more on these topics

ScotLife says the future is primary or professional

Scottish Life says the recent trend of life companies buying distribution is part of a strategy aimed at creating a new breed of direct salesforces to try to dominate the advice market.

The company says it is “quietly amused” by insurers which are buying up distribution and at the same time saying they are committed to the independent community.

But Friends Provident and Axa have hit back, saying their recent distribution buys are purely investments in the independent and multi-channel advice sectors and that distribution and manufacturing will stay separate in the long term.

Scottish Life says it remains completely focused on independent whole of market advice, will not sign multi-tie or single-tie deals and has no plans to set up a direct salesforce.

It says the retail distribution review could create a repolarisation of the market between professional financial planner and primary adviser and suggests the general financial adviser category may not survive the consultation.

It says: “We are convinced they are positioning themselves for a new breed of direct salesforce which they can dominate. There is no doubt that all this makes life tougher for mid-market IFAs but the news need not be bad for those who wish to embrace change and greater professionalism and move towards PFP status.

“To be a top of the market professional adviser or a quasi DSF controlled by a big brand insurer – the choice is yours.”

Friends marketing and UK distribution managing director Simon Clamp says: “Sesame and Pantheon Financial are autonomous organisations and it is simply not our intention to run them as anything other than independent entities in the long term. We bought them for their value as IFAs and IFAs will continue to be our most important distribution route.”

Winterthur Life spokes-man Paul Riddell says: “Axa will be keeping its distribution operations completely separate from its manufacturing divisions and Thinc Group will continue to remain an independent multi-channel advice business.”

Recommended

Safety thirst

The MSCI AC World index fell for a second consecutive month in July, down by 1.53 per cent in dollar terms, as the fallout from the US sub-prime mortgage crisis spread to lower-quality corporate debt, pushing yields higher.We saw a flight to safety and strong demand for government bonds. Gains in government bonds and investment-grade […]

Off the beaten track

Last week saw some fairly wild swings in share prices and other financial instruments. There were gyrations in financial instruments I had not even heard of. Such is the complexity of modern investment life that unless you make an effort to keep abreast of develop-ments in markets, products and indices, you can find yourself significantly […]

Protection business slumps in price war

Highclere Financial Services partner Alan Lakey is concerned over the slump in protection sales in the first half of this year.He has voiced concerns about a possible widening of the protection gap as insurers’ interim results reveal widespread falls in protection business.Standard Life saw sales fall by 50 per cent and Prudential’s business was down […]

India budget and the liquidity supercycle

Kunal Desai, manager of the Neptune India Fund, comments on how India’s 2017 budget will impact the Indian economy and equity market. Read article here: Important Information – for Investment Professionals only. Not for Retail Clients.Investment risksThe Neptune India Fund may have a high volatility rating and past performance is not a guide to future […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com