UK - Mellon Trust has won a mandate to provide administration services to the stakeholder pension scheme of Direct Line Life, the Glasgow based life insurance company.
In addition, Mellon will also provide investor servicing for Direct Line, including ISA administration and fund accounting, as well as global custody for Direct Line Unit Trusts Limited, Direct Line’s savings and investment arm.
Says Conor Hoey, head of pensions new business at Mellon Trust: “Direct Line has taken a long hard look at the prevailing investment climate, and has taken the strategic decision to outsource all its administrative functions to a single provider. It is our firm belief that pensions providers will increasingly look to third party administrators to work within the 1% cap on stakeholder charges.”
Duncan MacKechnie, managing director of Direct Line Life, adds: "We chose Mellon Trust for the simple reason that they had the capability to service all our requirements to a high specification from day one of our re-launch.”