AIA confirms its position on Quantum

American International Assurance (AIA), which opposes central sourcing arrangements, has agreed to form an agency relationship with Quantum.

Thursday, July 30th 1998, 12:00AM

American International Assurance (AIA), which opposes central sourcing arrangements, has agreed to form agency relationships with Quantum advisers.
General manager David Whyte says it's well-known that AIA is opposed to central sourcing arrangements.
"We rejected this concept four years ago and we have declined to participate in the current version."
Quantum is a different arrangement though, he says.
Whyte says although National Mutual are the majority shareholder, it has only in that position because it provided seed capital to set up the company, and it intends to reduce its stake over time.

He describes Quantum as an umbrella organisation that helps advisers do business, rather than being a producer group or another distribution channel for National Mutual agents.
"Ownership or institutional participation (in Quantum) is not regarded as controversial," he says. "It is more important to ascertain the operational standards, culture, and practice of the adviser than to accept a self-appointed description."
"There are many instances of advisers claiming impartiality, but who would practice as de facto sole agents."
Whyte says AIA has satisfied itself that Quantum advisers are offering impartial and objective advice to clients.
"The positioning statements made, and the practice methodologies adopted, by Quantum and its associates are consistent with the 'most appropriate advice' concept. We are happy to support their efforts in promoting the cause of advisers everywhere, who seek to offer objective and impartial advice to their clients.
"In keeping with our approach to all such organisations, the associates have been invited to apply for agency on our standard terms and conditions."
He says AIA is forming agency relationships with the advisers, it has not established an agency relationship with Quantum.
"Our agency relationship is with the individual associate advisory firms, and not Quantum, the umbrella organisation which is not a business producer," Whyte says.
Standard National Mutual agents (those who are not Quantum associates) will not be able to access AIA products through Quantum.

« IRD goes stag hunting

Get your tax questions answered online »

Special Offers