Standard Life Aberdeen has sold its insurance business to Phoenix Group for £3.2 billion and is leaving the world of life and pensions for good. All existing annuities and pensions – personal, group personal pensions, stakeholder and workplace pensions – will be moving to Phoenix Group.
The move doesn’t include the three platforms held by Standard Life – Standard Life Wrap, Elevate, and Parmenion, nor the advisory business, 1825.
In the press release provided by Standard Life Aberdeen:
“The Sale involves the disposal of Standard Life Assurance Limited (“SLAL”), with Standard Life Aberdeen retaining its UK retail platforms and financial advice business (the “Retail Platforms”). The businesses transferring to Phoenix Group as part of the Sale include the UK Mature Retail and Spread/risk books and the Europe, UK Retail and Workplace businesses (the “Disposed Businesses”).”
Although the wrap platform is remaining part of Standard Life, clients should be aware that technically speaking the SIPP and bond products held on the wrap are provided by different legal bodies and not actually administered by the platform. That said, although pension and bond products are to remain on the platform, they will also be administered by Phoenix Group.
We think it is important to bear in mind that the move may impact clients on the wrap more than initially thought. For one thing, clients that hold existing SIPP and bond products may encounter a change to charges to cover the fact that Phoenix will be the administrator for these investments and will therefore charge an admin fee.
Another point is that while MPA have grown accustomed to the high standard of service that we and our clients receive through Standard Life, Phoenix Group are a different organisation, and the service and terms that we are used to may vary.