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Independent endorsement for Scottish Life’s investment governance process
18 May 2009
Scottish Life, the pensions specialist arm of the Royal London Group, has received independent validation of the processes underlying its Governed Range, the unique investment proposition that was launched in January 2009.
The validation is contained in a report from AKG, the specialist financial services consultancy firm, which examines the value that the overall governance process delivers to adviser firms and their clients. In a comprehensive review, AKG have analysed the key individual processes that underpin the Governed Range, including risk profiling, asset allocation, fund selection, lifestyling, rebalancing and the role of the Investment Advisory Committee
Lead author of the report, Nigel Balchin, said:
"Good governance is an increasingly important issue for advisers. It encapsulates the duty of care an intermediary has for their client and, ultimately, it has to be the responsibility for the intermediary to ensure that good governance is in place.
"AKG has conducted a thorough review of the processes that underpin Scottish Life's Governed Range and our report details what these processes are and how they operate. We also give our views on the effectiveness of the governance."
Nick Leitch, Head of Investment Marketing at Scottish Life, said:
"We've had a very positive reaction from advisers following the launch of the Governed Range in January. We believe the investment proposition we've put together is the best in the market: but obviously we recognise that advisers may be cynical about such claims. That's why we commissioned independent analysis from AKG, a well respected organisation which is well known to IFAs.
"I'm sure the report will be an invaluable part of the 'due diligence' that IFAs will want to have in place, in relation to their investment recommendations to clients. The fact that an experienced, independent firm has 'kicked the tyres' will be an added reassurance."
The Governed Range is available, at no extra cost, within Scottish Life's group and individual pension products.
Copies of the AKG report are available to download at www.scottishlife.co.uk/AKG or on request from IFAs' normal contacts at Scottish Life.
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For further information please contact:
Scottish Life
Alasdair Buchanan, Head of Communications
0131 456 7133
Polhill Communications
Sally Biggs
0207 655 0520
Editor's Notes:
1. Scottish Life was founded in 1881 in Edinburgh as a proprietary company, becoming a mutual company in 1968.
On 1 July 2001, Scottish Life demutualised and transferred its business to The Royal London Mutual Insurance Society Limited. Scottish Life is a division of Royal London and is the specialist pensions business within the Group, providing individual and group pensions to the market via intermediaries.
Scottish Life and Royal London's other intermediary businesses are based mainly in Edinburgh where 1,180 staff are employed, with 720 working in other parts of the UK and overseas.
2. Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
- Scottish Life - UK pensions market
- Bright Grey - UK protection market
- Scottish Provident - UK protection market
- Royal London 360? - offshore investment markets
- RLAM - fund management
- RLAS - life and pensions administration
- Fundsdirect / Ascentric - funds supermarket; Wrap platform
Royal London also distributes life and pensions products through Abbey's national branch network.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £32.5 billion. Group businesses serve around 3.6 million customers and employ 2,870 people. Figures quoted are as at 31 March 2009
3. AKG is an actuarially based organisation which specialises in the provision of information and consultancy to the financial services industry. Nigel Balchin, lead author of the report, is an actuary with 35 years experience in UK financial services. He has been with AKG for 10 years, following spells with a number of UK life offices.
4. The Governed Range was launched by Scottish Life in January 2009. It helps advisers fulfill their Treating Customer Fairly responsibilities and offers unique flexibility to those who are looking to develop a customised approach for their clients.
Full details of the Governed Range are available at www.scottishlife.co.uk/time
