The group says overall gross sales were up 4% to £3.4bn over the first six months, with platform gross sales increasing to £2.8bn, 7% higher than this time last year. Platform sales now represent 82% of Skandia UK’s sales.
However, while platform sales were up, the group, which is part of Old Mutual, said its operating profits fell to £53m, a drop of 29% compared with the first half of 2010. Skandia attributes the fall to a lower profit from the smoothing of policyholder tax.
Looking forward Skandia said its preparations for RDR are advanced and it intends to introduce a new charging structure in time for the 31 December 2012 deadline.
Peter Mann, chief executive at Skandia UK, said: “We are supportive of the way the FSA’s platform consultation is progressing and are pleased with the confirmation that it remains minded to ban cash rebates. We believe this is in the best interests of customers but we are ready to implement either cash or unit rebates depending on the FSA’s final decision.”
