Scottish Equitable Intern-ational is considering its options for its Dublin-based offshoot after having to put its with-profits bond on ice.
SEI opened offices in Dub-lin with the intention of offering the with-profits bond.
But following the events of September 11, the launch was delayed, with the company claiming that the climate was now too unfavourable, leaving the new arm with an extensive infrastructure in place and no product to sell.
SEI, whose main base is in Luxemburg, set up the office in Dublin to take advantage of greater regulatory flexibility enabling it to offer a with-profits bond.
Financial consultancy The Abacus director Philip Martin says: “Perhaps this demonstrates that it is impossible for a traditional provider to set up a with-profits fund paying bonuses at the current level and providing the required return on capital. What does this say about existing with-profits products?” A Scottish Equitable spokeswoman says: “We are considering all the options and we are looking into other products but have not yet decided.”