Vitality savings plans
Andy_Schleider
Member
I've got an IFA client who has a number of clients invested in Vitality.
They want to get them out, and have told me that there is a June deadline on this, so they need to move fairly quickly to get everyone off the platform and onto the new one (Quilter has been mooted, with their WealthSelect MPS).
My question is, has anyone else had to deal with a mass migration from one company to another when the old company has closed to new business? Can it be done with a mailshot letter, or does advice have to be delivered to each and every client? Is there anything else that needs to be considered?
They're getting quite stretched and panicking a little bit so I want to try and help them as much as I can and make the transition as smooth as possible.
Any thoughts and suggestions gratefully received!
Comments
Hi Andy
As far as I am aware advice has to be given to each and every client. Obviously, some standard wording can be used and I am sure if new solutions are similar then a lot of templating in these areas would help, however, my understanding is that they have to complete a full advice file for each.
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My understanding is also that Vitality Invest will remain open for existing clients but closed to new biz last year. Not sure where the deadline comes from? Perhaps they just want to move ASAP especially if paying in regulars or the firm you are working with have set their own deadline.
Still, my understanding is that it would still be advice to each client, cost comparisons etc all as per normal....although the reasoning should be pretty standard for every client i.e. they don't want your business anymore/won't accept new business etc so an easy reasoning piece.
This is an excerpt from an email they received from Vitality:
"Towards the end of last year, we notified you about our decision to close VitalityInvest to all new business. We also confirmed to you that we would stop top-ups and transfers for existing clients from 6 April 2023.
We've now taken the decision to exit the retail investment market completely and it’s our intention to wind down the business for all customers over the next 6 months. This means that you will need to find a new provider to manage your clients’ investments."
From what I can gather, if they do nothing, they will be automatically moved to abrdn
Ah perhaps that might change things then. Maybe best for them to run it past their compliance support and go from there. Even if you don't have to compare old vs new, I would still expect advice to be given on the new home for the clients but compliance may have a differing view?