Prudential will no longer sell annuities through advisers on the open market and will offer its product to existing customers only.
A spokesman said: ‘We can confirm that we propose to make a change to conventional annuity business written with financial advisers.
‘As a result of this change, from 17 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.
Pru said it will continue to provide access to conventional annuities for financial advisers with existing Pru pension clients and for advisers’ clients holding Prudential annuity income and rate guarantees.
The asset backed annuity business, the income choice annuity, will continue to be accepted on a standard and enhanced basis from advisers.
Pru said existing annuity customers who currently receive regular retirement income payments will not be affected by this decision.
Source: New Model Adviser