Annuities to go through platforms
Financial advisers will be given access to annuities through platforms in what Colonial First State (CFS) claims is a first.
CFS announced that it will provide annuities through its FirstWrap and FirstChoice platforms from the middle of 2015.
CFS executive general manager, Linda Elkins, said the decision to make annuities available through its platforms, came in response to recent Investment Trends research, showing almost 40 per cent of advisers said they intended to use some type of annuity in the year ahead.
“We recognise advisers are considering increasing their use of annuities on behalf of their clients, and our platforms can make the process of managing clients’ retirement savings in the one place a much better experience,” she said.
“We conducted extensive market research as well as in-depth qualitative research with a wide range of financial advisers from across the country, which confirmed advisers are looking for more efficient ways to deliver advice to their clients, particularly in retirement.
“We aim to provide advisers and their clients with quality investment solutions, simple products and reliable service.
“Bringing annuities on platform will reduce the amount of paperwork required and provide a more complete solution on platform for advisers and their clients”.
CFS revealed that in was intended that the annuities offered through its platforms would be “stand-alone” products and would be provided by Challenger and CommInsure, who account for approximately 70 per cent of the Australian annuity market.
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