Prudential have decided they will no longer sell annuities through advisers or intermediaries via the open market.
A spokesman said: ‘We can confirm that we propose to make a change to conventional annuity business written with financial advisers.’
They have decided from the 17th June 2016 ‘we will no longer accept applications for new external conventional annuity business. There is no change to any of the other ways in which we offer annuity products to customers.’
From this date, they will only offer their product to existing customers only.
Prudential said they would continue to provide access to conventional annuities for financial advisers with existing Prudential pension clients and for advisers clients holding Prudential annuity income and rate guarantees.
Prudential’s asset backed annuity business, the Income Choice Annuity, will continue to be accepted on a standard and enhanced basis from advisers.
Prudential also confirmed that their existing annuity customers who currently receive regular income payments will not be affected by this decision.