Cofunds and L&G have staked a claim to provide for the full spectrum of distribution in the post de-polarised financial services world through a move to create a "strategic alliance".
First new product development will focus on an onshore investment bond and a personal pension, with a target of rollout sometime between April to June 2005.
The bond and pension products will be branded according to which distribution routes are being targeted: Cofunds branding for IFAs, L&G branding for the multi-tie market.
Administration will be shared between the two companies.
Reasons given for the deal include Cofunds ‘independent’ status, and its ability as a supermarket to deliver distribution at reasonable cost, while L&G will bring strong branding and product development to the party.
Systems interoperability is another crucial key to the deal.
Stuart Dyer, chief executive Cofunds, says the open architecture approach to means the two firms can “work across the distribution spectrum”.
The L&G name will “underline Cofunds offering,” he adds.
IFAs should expect consultations on details of the intended new products before their introduction next year, Dyer says.IFAonline
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