In a move described as an ‘important milestone in the integration’, Aviva and Friends Life have merged their Independent Governance Committees (IGCs).
From the 6 April 2015, the FCA said all providers which operate workplace pensions need to set up an IGC to assess value for money.
In April 2015 Aviva completed its acquisition of Friends Life for a deal worth over £5 billion, and integration is still ongoing between the two insurance giants.
The pair have now agreed to merge their IGCs and this new committee will represent over 3 million workplace pension members.
The chair of the Aviva IGC, Inder Dhingra, will now become the chair of the new committee.
Dhingra said IGCs are critical for workplace pension customers.
‘IGCs play a vital role in representing members of workplace pensions and ensuring that they are receiving value for money from their pension provider. The new IGC provides an excellent blend of skills and experience, and provides good continuity of membership between the two previous committees.’
Andy Curran (pictured), Aviva managing director of corporate and business solutions, described the move to combine the two IGCs as an ‘important milestone’ in their integration.
‘Both IGCs carried out some great work in their first year on behalf of members,’ he said.
‘It is important that we now bring the expertise from both committees together to build on this and to serve the combined business. Having one IGCoverseeing all our workplace pension schemes will ensure a level of consistency for members and means the IGC will have a view across the combined business of Aviva and Friends Life.’
The FCA will review the effectiveness of IGCs later this year.
Source: New Model Adviser