Standard Life has apologised for its subsidiary Standard Life Bank poaching business from an IFA.
Derek Williams Partnership director Derek Williams discovered that his client had been approached by Standard Life Bank offering him a capital-protected product which is only available direct to investors.
Williams says his only option was to recommend the plan to his client as he says it is a superior product to those available through the IFA channel. The client was looking to invest the surplus from a Standard Life low-cost mortgage endowment.
Williams says he is concerned that Standard Life is using a “back-door method” of selling direct to IFAs' clients.
He says he is considering recommending that his clients invest maturing policies into ING or Egg accounts rather than with Standard Life Bank.
Standard Life says it is not common practice for this situation to arise and says it suspects that it has arisen due to a mix-up of client data.
Williams says: “For a company purporting to be supporting IFAs, this is a very disappointing back-door standard. With the executive management using such underhand methods, I wonder if we should be putting business with Standard Life full stop or is this just the way of the world now?” Standard Life managing director of marketing Simon Douglas says: “This should not have happened. We have put this down to records maybe not being up to date. We can do no more than apologise.”