Royal London is pulling the plug on its direct sales operation to focus distribution through external intermediaries.
At this stage, the mutual life office says there could potentially be around 380 redundancies depending on consultation with staff around the UK.
Partnerships with other organisations could be formed to maintain customer service, suggests Mike Yardley, group chief executive at Royal London, but will not affect business managed by other Royal London divisions – Scottish Life, Bright Grey and RLAM.
“For Royal London, the economics of face-to-face advice through a direct sales force just don’t add up any longer. Our Group strategy is to focus on the successful growth of our product manufacturing businesses, Scottish Life, Bright Grey, and Royal London Asset Management, which distribute through intermediaries.”
Sales through the direct “face-to-face” workforce represented just 7% of Royal London’s business in 2003.IFAonline
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