UK - Prudential has announced that it intends to focus its intermediated business on a series of core markets in which it can add value for customers, IFAs and shareholders.
This move will see Scottish Amicable Financial Services - distributor of Scottish Amicable and Prudential products to IFAs - working even more closely with advisers in the market segments that offer the greatest prospect of profitability for both parties.
The company will build a stronger presence in the single premium, transfer, and fee based segments of the pensions market whilst building on its strong position in the bond and annuity markets.
Tony Kempster, distribution director of Prudential intermediary business said: The long-term view is that initial commission based pensions business cannot be sustained in current market conditions. Over the next three months, the company will phase out the payment of initial commission on all new regular premium pension business sold through the intermediated channel.
We are determined to build an even more powerful position in the IFA market but we believe that for its medium term prospects, providers and advisers alike must adopt a sensible and sustainable approach to profitability.
Part of our drive is to focus on customers that provide the best opportunities for IFAs to secure long-term profitable business. We are fully committed to providing advisers with the necessary products and support to develop such business. Going forward, we will only operate in segments of the market where we can create value for customers, for IFAs and for our own shareholders.
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