Alexander Forbes Limited and Lane Clark & Peacock LLP (LCP) are pleased to announce that their joint venture company, Investment Solutions, has today been given regulatory approval by the Financial Services Authority (FSA) to offer its services in the UK market.
Investment Solutions in the UK was created following the acquisition in September 2002 of Schroder Pensions Group by AF and leading consulting actuaries LCP, in which Alexander Forbes has a 60% stake. Under the terms of the acquisition, following completion, Schroder Pensions Limited was renamed Investment Solutions and its subsidiary, Schroder Pensions Services Ltd was renamed LCP DC Link Ltd.
Alexander Forbes and LCP identified a growing need to provide a co-ordinated service to UK companies, given the increasingly complex array of benefit plans that companies are now offering, with many organisations providing both Defined Benefit and Defined Contribution pension arrangements. LCP DC Link will add the valuable Defined Contribution administration function to LCP`s services.
Additionally, as was announced at the time of the SPG acquisition, "Investment Solutions... the leading South African based multi-manager... will provide specialist support in the areas of investment product design and administration". LCP and Investment Solutions identified the growing need for specialist investment products to support both Defined Contribution and Defined Benefit pension schemes. The life licence acquired through the acquisition and now approved by the FSA provides an ideal vehicle in which to develop these products for the UK market.
Commenting on receipt of FSA approval, Rael Gordon, Chief Executive of Alexander Forbes Limited, said, "We now have the authorisation necessary to make our specialist investment products available to the UK pensions market. The completion of the acquisition will also enable LCP to roll out its integrated service to companies with Defined Contribution plans. We believe the timing of this expansion has coincided well with the increase in demand created by the significant changes in the UK market, a period not dissimilar to that in South Africa a decade ago.
"We believe that by combining Investment Solutions` experience gained in the South African market with LCP`s actuarial skills and research we can develop fresh, innovative, liability focused investment solutions.
Tony Cunningham, LCP Strategy Partner, commented: "The DC market in the UK is, in financial terms, still in its development stage and we have a first class base from which to develop further services for this fast growing and changing market.
"In conjunction with LCP`s existing pensions administration business, the group can now provide pensions administration services across the full range of pension scheme arrangements." Taken in conjunction with the exciting developmental work done with Investment Solutions, we are confident that we will be taking DC pension service provision to a new level in the UK market."
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