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Aegon sets 2018 target on Cofunds 'replatforming' plans

Aegon has set a target of finishing changes to the technology used by Cofunds in the second half of 2018.

Aegon sets 2018 target on Cofunds 'replatforming' plans

Aegon has set a target of finishing changes to the technology used by Cofunds in the second half of 2018. 

A presentation accompanying Aegon's results for the first quarter of the year said the company expected to complete 'replatforming' Cofunds in the second half of next year. 

In February analysts at RBC Capital suggested Aegon would need to spend £240 million to complete the technology project, but Aegon has disputed this. 

In March Aegon told advisers it expected users of its platform would be able to move to an integrated platform in the first half of 2018. It has set up an board of advisers that use the platforms to dictate what an integrated platform will include.  

The £140 million acquisition of the platform from Legal & General boosted Aegon's overall platform assets to £102 billion

The combined gross inflows for the two platforms was £7.3 billion in the first quarter of this year. This included £5.4 billion inflows into Cofunds and £1.9 billion inflows into the existing Aegon platform, according to a presentation. 

Cofunds now has £87 billion of assets under administration, while Aegons's platform has £15 billion of assets.

Aegon chief executive Adrian Grace (pictured) said record business flows were down to ‘strong market performance and resilient consumer confidence’ with pension freedoms continuing ‘to drive advice opportunities.’

 

Aegon reported earnings before tax of £29 million from life and pensions for the first three months of 2017, compared to £18 million in the same period last year. 

The life company said advisers receive more inquiries about pension transfers than they can respond to and the regulator should clarify what it expects from defined benefit (DB) transfer advice.

‘Anecdotally advisers are telling us that enquiries about DB to defined contribution transfers remain high, with demand for advice exceeding supply,' he said.

‘With advisers naturally cautious, there is a growing consensus that the Financial Conduct Authority could benefit the market by offering regulatory clarity on what it expects from transfer advice, so that advisers can respond to customer requests for advice with confidence.'

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