M2 Financial boss Mark Howard has admitted the Nottingham-based firm considered moving to single-tie arrangements for annuities and protection but shelved the plans after staff expressed concern.
Steve Buttercase, who left M2 last month, said the firm held two staff meetings in September and March when it announced a single-tied agreement with Norwich Union for protection and Prudential for annuities.
Howard, M2 managing director, acknowledged the March meeting but said that the deal with Pru had not been completed and that the meeting outlined what would happen in the event of such a deal.
‘We said, “If this goes ahead, this is what happens”,’ he said. M2 decided not to go ahead with the move shortly after the meeting.
Howard said the plans had produced a ‘mixed reaction’ from advisers and said the firm had listened to IFA concerns. ‘We listened to our adviser team. We listen to the feedback they give us on every aspect of our business,’ he said.