A month ago, Standard Life, announced it would undertake a strategic review, which could see it demutualised in order to raise sufficient capital adequacy to comply with new FSA rules.
But, John Ellis, head of public affairs at the Life Insurance Association (LIA), said he believed that it was still too early to come to any firm conclusions over the company.
Ellis said: “I think they will have to demutualise. It is a sound company but the adjustment in accounting methods mean that changes will have to be made so it fits in with the FSA’s idea of best practice. I know it will be hard for intermediaries who are advising clients, but the most sensible thing is to wait and see.”
An update on the company’s strategic review will be given at its annual general meeting on 6 April 2004.
Standard Life Bank, a subsidiary of the mutual, which receives 70 per cent of its business from intermediaries, insisted the uncertainty surrounding its parent had not affected business.
A spokesman said: “Since Christmas business has been very good. All our hard work with brokers has been paying off.”
He also denied the bank would be sold off as part of the strategic review.
