Abbey unveils ambitious growth plans for Wrap

15 June 2006

Press Release

Abbey has announced that it aims to grow its intermediary investment sales by nearly 200% by 2008, demonstrating its continuing commitment to the intermediary market. One major element of this will see it embarking on an accelerated programme to radically enhance its Wrap proposition for IFAs, ahead of a re-launch of this business potentially under the James Hay brand in the Autumn.

It is unveiling these ambitious plans to grow its share of the UK investment market following its announcement of the sale of its life businesses to Resolution plc. For the intermediary market, this sees Abbey retaining James Hay, its market-leading self-invested personal pension company, and its Wrap business. It sees these areas as key drivers of future growth and is investing heavily in them.

Ignacio Izquierdo, Director of Sales and Marketing, Abbey Insurance and Asset Management, said, "The intermediary channel is absolutely core for us, and James Hay is a critical part of our future strategy. We are wholly committed to accelerating our growth through investing in our business, systems and services to radically improve our proposition for IFAs and intermediaries.

"We are here for the long term and have very ambitious plans. We are working from a strong starting point but the coming months will see us announcing several high profile initiatives which demonstrate the strength of our desire to be a market leading force in Wrap for the long term."

Specifically on the Wrap front, there is an immediate step change as Abbey enters an accelerated development phase with significant investment into its innovative, flexible and competitively priced investment wrappers aligned to the intermediary wealth management market. Abbey's Wrap proposition has already seen its assets under administration rise by 29 per cent over the last six months and earlier this year passed the milestone of 1000 registered users of its online platform.

It is anticipated that new, market-leading functionality enhancements will be delivered by the Autumn of this year; with a second phase of pioneering developments coming online in 2007.

Already a leading SIPP provider, James Hay is celebrating its SIPP's tenth anniversary this month, and plans ambitious growth in this area, focusing on excellence in flexible and innovative solutions with quality service. It will be focusing on developing a series of new product and proposition initiatives aimed primarily at private clients, which will be rolling out from later this year.

Ignacio Izquierdo, continued, "Commentators have predicted exponential growth in the SIPP market following A-day. We've already seen a 47 per cent increase in new business compared to the same period last year. We have over £11 billion of SIPP and Wrap assets under administration and will continue to focus on services and growth from our commanding position in this market."

Notes to editors:

1. This material is aimed at Intermediaries and Investment Professionals only. Abbey for Intermediaries is a brand and not a regulated company. Abbey is a registered trademark of Abbey National plc. Registered office: Abbey National plc, 2 Triton Square, Regents Place, London NW1 3AN. Registered no.2294747.
2. Abbey is a registered trademark of Abbey National plc. Abbey National Wrap Managers Limited (Registered in England No 4773695) is a company owned by Abbey National plc, providing web-based transacting, reporting and administration facilities.
3. Registered office: Abbey National House, 2 Triton Square, Regent's Place, London NW1 3AN, United Kingdom. Telephone 0870 607 6000. Authorised and regulated by the Financial Services Authority (FSA) - FSA Registration Number 225574. You can check Abbey National Wrap Manager's authorisation with the Financial Services Authority at www.fsa.gov.uk/register. The Wrap SIPP is not a regulated product as defined by the Financial Services and Markets Act 2000.