Friends shuts door on 500 sales staff

FRIENDS Provident is axing its sales staff with the loss of 500 jobs. The life assurer will close the direct sales force because of rising costs and the changing regulatory regime.

About 380 sales staff across the UK will lose their jobs. Some among the 300-strong support personnel will also be made redundant. Up to 200 will be offered positions as representatives on a self-employed basis.

Managing director Ben Gunn said: 'It was a difficult decision, but financially the benefits to the group look pretty clear.'

Prudential, Pearl and Britannic have dumped their direct sales people in recent years. The Friends sales team generated 6.5% of the group's life and pension sales last year. It was created about 12 years ago.

The FTSE 100 company will rely on independent financial advisers and an enlarged team of appointed representatives, already 600-strong, to sell products.

The polarisation rules, which made a distinction between independent advisers and tied agents, are being dismantled.

Rules limiting fees to 1% of funds under management in some products have forced life companies to cut costs.