6th Feb 2015 11:32
LONDON (Alliance News) - Standard Life PLC Friday said it is launching a financial advice business across the UK in response to big changes in pensions, and it also acquiring Skipton Building Society's wealth management firm Pearson Jones PLCa a deal that will bring in assets under advice of GBP1.1 billion.
The FTSE 100 savings and investment company will be looking to tap into opportunities arising from new pensions rules coming into force in the UK from the beginning of April, when the traditional requirement for individuals to buy annuities with their pension pots will be officially removed and replaced with new freedom to invest in other areas.
Standard Life said the freedom arising from the abolition of the effective requirement to buy annuities, coupled with the rise of defined contribution arrangements in the place of defined benefit schemes, is driving new demand for financial advice.
The group said that its service will be delivered face-to-face, on the phone and through digital services, as it looks to satisfy what it thinks will be seen as an "essential service" by a generation of individuals.
"It [the service] will integrate with Standard Life's existing workplace and direct services by providing a natural next step for customers with needs that can no longer entirely be met through self-service or guidance," Standard Life said.
Standard Life, which is a provider to independent financial advisers, said it will continue to support advice firms by developing platform technology, products and support services.
"We expect this essential part of the market to continue growing strongly for exactly the same reasons we are building our own advice business," Standard Life said.
"The new business will build on the advice and guidance capabilities Standard Life already deploys on the phone and online. Through the creation of a new academy, the business will also be active in recruiting and training people for a career in financial advice," the company added.
Standard Life also suggested there will be further acquisitions going forward as it looks to grow.
"The growth of the advice business will be accelerated through the acquisition of progressive financial advice firms which align well with our operating model. This will enable Standard Life to tap into the proven expertise and professionalism in the advice market," the company said.
The acquisition of Pearson Jones is expected to complete in the second quarter. The deal, which is subject to regulatory approval, was made for an undisclosed sum.
Standard Life shares were up 0.2% at 402.50 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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