UK - Standard Life has clinched its biggest ever group additional voluntary contribution win with its appointment as provider to the Consignia scheme.
Standard Life will be an additional with-profits AVC provider to the £17bn Consignia Pension Plan final salary scheme which has 197,000 employees.
Standard Life will join the list of three other providers – Equitable Life, Abbey National, and CGNU.
The policies currently available to Consignia members are the with-profits, unit-linked and Abbey National's deposit-based scheme. Standard Life marketing development manager Barry O’Dwyer said: “This mandate has huge potential as the scheme has 197,000 clients. The potential membership makes it the biggest AVC account win ever for Standard Life.
“The fund could be attractive to members because the with-profits scheme allows people to invest in the stock market as well as in property – types of assets which are likely to perform well over the long-term.”
O’Dwyer added: “With-profits funds have always been popular with members and Equitable Life had a major presence in this market. Although with-profits has come under fire from some quarters, particularly in the aftermath of Equitable’s decision to close, a lot of the criticism was ill-informed.”
Consignia finance director Gerry Degaute said that 30,000 of the plans members currently have AVC schemes.
Degaute added: “We have decided to have a further panel of AVC providers and have selected Standard Life. The size of our assets could grow to more than £40m – the current value of AVC schemes.”
By Shifa Rahman
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