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Skandia denies taking IFA commission in L&G deal

Skandia has blamed poor communication for bringing about accusations that it is taking commission from IFA sales of Legal & General annuities.

The insurer signed an annuity deal with L&G earlier this year and started sending letters to IFAs with clients approaching retirement about their annuity options.

The first option is to complete an acceptance form and return it to Skandia, which will arrange the annuity with L&G. Skandia then receives 2 per cent commission from L&G and the IFA receives nothing.

Skandia alternatively inv- ites the client to buy an L&G annuity via the IFA or use the open-market option to choose from other annuity providers.

QS Financial director Graham Bowser believes Skandia is effectively taking commission for work done by the IFA if the adviser opts for the L&G annuity and instructs the client to fill in the acceptance form provided by Skandia.

Skandia pensions marketing director Nick Bladen says: “We encourage IFAs to use the open-market option. The first option is a default option that we have to offer. Following feedback from intermediaries, we appreciate the letter is not well worded and will make it clearer.”

Bowser says: “An IFA could recommend an L&G annuity through the open market but will have difficulty explaining to the clients why they could not have completed the acceptance form in the first place.”


Bright Grey knocks timing of LivVic’s Red Arc services

Bright Grey has hit out at Liverpool Victoria for only offering Red Arc’s care services on its critical-illness policies after a claim has been paid. Red Arc offers counselling and personal nurses to Bright Grey policyholders at point of claim but Liverpool Victoria, which introduced the service to new and existing CI policyholders last week, […]

False sense of relief

In 2004 alone, some 360,000 people left the UK, the highest outflow ever seen. Of that number, the Office for National Statistics says a record 208,000, or 58 per cent, were British citizens and the trend is forecast to continue.

Fifth EIS from Arc

Arc Fund Management is offering its fifth enterprise investment scheme fund for private investors. IFAs will get up to 3 per cent initial commission and 0.33 per cent trail for three years. Minimum investment is 2,000 and the offer closes on October 5.

Product matters

It is difficult to look at the Kent Reliance intergenerational mortgage as a product as it is more of an initiative. This idea is long on concept and short on detail. The only place I managed to find information on this mortgage is in the press as the Kent Reliance website had no information and […]

Three catalysts for European equities

By Rob Burnett, Manager of the Neptune European Opportunities Fund In recent weeks, the bear case for European equities has become more pronounced on the back of weaker-than-expected GDP data and deflation concerns. This softening in economic momentum has led some investors to question whether the ECB is behind the curve and indeed whether it […]


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