Scottish Mutual to sell Scottish Provident onshore and offshore products
Scottish Provident's products are to be distributed through Scottish Mutual's intermediary branch network.
This follows Abbey National's takeover of Scottish Provident, which comes fully into force at midnight on 31 July.
The Scottish Provident brand will not disappear following the takeover and its products will instead be marketed alongside those of Scottish Mutual.
Scottish Mutual, already owned by Abbey National, has a branch and consultant network to service intermediary requirements, as does Scottish Provident UK.
Following the takeover, some rationalisation will take place, although widespread redundancies are not expected as the two companies share relatively little common ground. Scottish Provident UK is primarily a protection business, while Scottish Mutual's core business is pensions and savings.
Scottish Mutual consultants are currently being familiarised with the Scottish Provident range, with the aim of being fully conversant in both Scottish Provident and Scottish Provident International (SPI) products by the end of August.
Isle of Man-based SPI, which specialises in offshore investment portfolio bonds, currently markets its products in the UK via a small team of consultants.
SPI's technical development manager, Susan Quayle, said: 'Although there will be no changes to the brand itself, there will be changes in marketing strategy as current strategies will be harmonised. Access to the Scottish Mutual regional branch network will mean an increased profile for SPI as well as a bigger distribution base.'
Quayle said she believed SPI would in future be working closely with Scottish Mutual International (SMI), Scottish Mutual's Dublin-based subsidiary. The two companies would complement each other, she said, as SMI's natural market was in Europe, whereas SPI was UK-orientated because of Isle of Man regulatory requirements prohibiting sales to European markets.
Longer term, Abbey National is looking at pulling together the marketing for the UK operations of both companies, Abbey National's Life division as well as SMI and SPI. One set of employees would then service the parent company's different brands.
SPI is also no longer actively marketing its Individual Investment Portfolio (IIP) bond. No successor vehicle is to be offered although existing clients will continue to be able to move around between funds in the offered range.
The other products in the range, the Select Preference Portfolio aimed at the UK market, and Choice Preference, an international vehicle, will continue to be offered.
Quayle said: 'IIP is being cut from the range because it is no longer relevant to the UK market. It was a single premium bond that relied on in-house funds. The market has moved on and is much more sophisticated than that now.'
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