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ScotMut takes the leading role in ScotProv merger

Abbey National has shocked Scottish Provident employees by giving two of the plum jobs in its new integrated life business to Scottish Mutual staff.

In an email leaked to Money Marketing, chief executive of Abbey-owned Scottish Mutual&#39s Graham Pottinger outlines to AbbeyNat staff how ScotMut will be in pole position in the newly merged business.

All AbbeyNat life division employees received the email from Pottinger at 9.22am on the morning the takeover deal was announced, placing ScotMut at the helm of the merged operation.

The headquarters will be in Glasgow, run by Pottinger. ScotProv Group managing director David Woods willbe reporting to Pottinger. ScotMut&#39s sales director John Campbell will head the ScotProv sales team.

ScotProv sales director Alistair Schofield, who is credited with building up the market-leading protection busi- ness, looks set to lose out.

The memo asks for Abbey Nat volunteers to train ScotProv employees. It says: “There will be opportunities for employees to work in Edinburgh to show our new colleagues how wedo things within the Abbey National group.”

Abbey had cited ScotProv&#39s outstanding performance in the protection market as a major factor in the deal. ScotProv holds a 30 per cent protection market share and is highly regarded by IFAs.

An Abbey-dominated management committee will take charge of the integration of the companies. Sources at ScotProv claim this is contrary to what had previously been jointly agreed.

A ScotProv source says: “People are asking, &#39Where does this leave us?&#39 These decisions have been made very early without any consultation with ScotProv. This says their people are better than ours, when we havea proven track record.”

ScotProv spokeswoman Susan Sneddon says: “Sen-ior managers from ScotProv UK met with Graham Pottinger and Tim Ingram of Abbey National. The memo was discussed and it was agreed that the wording was perhaps not as sensitive as it could have been.”


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