Pru accused of non-compliance

Prudential has been accused of bypassing IFAs and ignoring compliance procedures in a recent mailout.

Dave King, director of ASK Financial Management, contacted Mortgage Strategy after a colleague received an endowment warning letter from The Pru inviting him to remortgage with Halifax.

A leaflet accompanying the letter outlines a remortgaging arrangement between The Pru and Halifax from page three but doesn’t give contact details for IFA Promotions until page six. The leaflet also explains The Pru doesn’t receive introductory fees for remortgage business, though the cost of the leaflet is shared by the lenders.

King says that as an IFA if he recommended a lender which was contributing to the cost of the mailshot, he would be non-compliant. The Financial Services Authority refused to comment but The Pru and Halifax defended the leaflet.

A spokesman for The Pru says: “The solution we offer with Halifax is just one option available to customers with a shortfall.”

Halifax spokesman Paul Fincham adds: “Prudential is simply offering Halifax as an option to its endowment customers.”