View more on these topics

Scottish Widows and Nucleus in legacy clash

Nucleus chief executive David Ferguson

The financial services industry is continuing to profiteer from legacy clients in a way which would be considered unacceptable in any other sector, according to Nucleus.

Speaking at a Perspective roundtable in London last week, Nucleus chief executive David Ferguson said fund managers, platforms and life offices all have large numbers of legacy customers paying charges which are much higher than those paid by new customers.

He said: “Big life companies need to realise the way they treat legacy clients is really not that great. If that was British Gas, and it charged old customers this way, the company would be on the News at 10 every night of the week.”

Ferguson argued it is “so disingenuous” for the industry to be selling transparent new products post-RDR while still making money off older-style products.

He added: “This industry is engaging with millions of people and most are still getting a raw deal somewhere down the line from what they bought before. Until someone has the courage to break that cycle, we will always have that issue.”

But Scottish Widows head of distribution development Robert Kerr disputed Ferguson’s claims, saying: “If you step back 10 years ago, then there would probably be some valid arguments in what you are saying. But the reality is the industry has moved on.

“There are not that many legacy contracts still in place with really high charges. If you look at most providers’ books, and the lapses they have taken over the last five years, most of that business has flushed through. The proportion of in-house managed funds is much smaller as well.

“The industry has learned some lessons and I do not think it is as black and white as all that anymore. Customer engagement is improving.”



Euro regulator sets out pensions tax harmonisation proposals

An influential European regulator has published a discussion paper suggesting pension tax regimes may need to be harmonised across Europe to create a single market for personal pension products. The European Insurance and Occupational Pensions Authority, or Eiopa, has been asked by the European Commission to provide advice on enabling “cross border activity” for personal […]

FCA’s Wheatley proposes ‘dual track’ system to replace Libor

The Libor benchmark is likely to be replaced by a “dual-track” system where survey-based lending rates run alongside transaction-linked indices, the FT reports. The Libor rate – the rate at which banks can borrow funds from other banks – has been at the centre of huge controversy over the past year. Royal Bank of Scotland, […]

Tony Mudd: When it pays to give

Much has been written of the FA 2002 schedule 1A amendments to IHTA 1984, which the readers will be well aware is the legislation introducing the new 36 per cent rate of inheritance tax. This rate can apply where 10 per cent or more of the deceased’s estate is left to a charity in respect […]

The Great British Break-Off

Despite predictions that a vote to leave the European Union would result in an economic apocalypse, UK equities have shown the market equivalent of a stiff upper lip: bouncing back, keeping calm, and carrying on. Although the road towards Brexit remains clouded in uncertainty, UK equities offer a range of opportunities to investors seeking returns […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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