UK – Royal London Asset Management (RLAM) says it could enter the UK defined contribution (DC) pensions market by the end of the year, leveraging on the dc solutions platform it acquired with the buy-out of Scottish Life in October last year.

Chris Edge, head of sales and marketing at RLAM, comments: “There is no firm proposal yet, but I am inclined to think that Q4 this year is a possibility, although the first quarter of next year is much more likely.”

Edge says that while the UK defined benefit market is a “finite entity”, the DC market will be the pensions growth area
“ There’s still a very large DB pot out there, however DC is where things are going to happen and I think for someone like us it makes a great deal of sense to be in the market.
“ Within a broad financial services group we are an autonomous asset management group, but we have got dc solutions offering solutions and they already provide DC administration to fund managers like INVESCO and Phillips & Drew.”

Edge adds that one of the dangers of the DC proposition for plan sponsors is the risk of being sued by a member for inadequate advice, which is where he believes the call centre and education reach of the group could play a part.
“ Nobody though is going to buy an investment solution from an asset manager where the investment is not robust.”