11th February 2014

Fidelity and Annuity direct join forces to deliver better retirement outcomes

• Fidelity completes acquisition of retirement specialist Annuity Direct
• Focus on delivering expert help which is key to making the right retirement choices
• Alan Higham appointed as Head of Retirement Insight at Fidelity whilst retaining Chairmanship of Annuity Direct

Fidelity Worldwide Investment has completed its acquisition of the retirement specialist Annuity Direct. Fidelity announced its intention to acquire Annuity Direct in October 2013 subject to approval by the Financial Conduct Authority (FCA).  This has been received so allowing completion of the acquisition on 10 February 2014.

The two firms share a common ambition to help UK consumers achieve better retirement outcomes. Together they will look to provide many of Fidelity’s 1.2 million customers with access to a broad range of retirement products and services coupled with guidance and advice where they don't already have access to an adviser. In addition they will work to support adviser firms serving their own customers both at and in retirement.

Fidelity and Annuity Direct have a common goal to put the interests of their customers first. Central to this is a shared belief that customers need access to expert help at retirement if they are to achieve the best financial outcome for their specific circumstances.  This is a crucial component of what has brought the two companies together and forms the key focus for their future development plans. These involve working directly with Fidelity’s Personal Investing and Workplace pension customers as well as supporting advisers who use Fidelity’s platform service, FundsNetwork.

Fidelity will continue to expand the range of products and services it offers at retirement, while Annuity Direct will continue to build its existing business advising individuals, pension scheme trustees and a range of other intermediaries. 

Alan Higham will continue as Chairman of Annuity Direct but will take up a newly created role at Fidelity as Head of Retirement Insight.  In this role, Alan will lead Fidelity’s thinking on retirement issues and work with Richard Parkin, Head of Retirement to develop the products and services Fidelity provides to its customers.  Fidelity will support Alan and Annuity Direct in campaigning for improvements to the retirement market that will ensure better outcomes for individuals at retirement. 

Don Grant will become Chief Executive Officer of Annuity Direct while Bob Bullivant will continue to lead training and compliance for the Isle of Wight based adviser.

Richard Parkin, Head of Retirement, Fidelity Worldwide Investment said: “Fidelity has over 1 million customers and planning for a comfortable retirement will be high up on their list of personal financial priorities. At Fidelity and Annuity Direct, our goal is to help them succeed and to support them as they make vitally important but often complex choices as they plan for retirement. We believe that many of our customers need expert help to do this.  Fidelity’s acquisition of Annuity Direct enables us to provide retirement guidance and advice to any of our customers who do not already have access to this, as well as support the many advisers who are using Fidelity’s platforms to service their clients’ retirement needs.                                      

“Alan Higham’s broader role within Fidelity gives us a clear opportunity to really progress the retirement agenda.  Alan is well respected in this market and his customer-first approach is very consistent with that followed by Fidelity.  We now have the components we need in place to develop and deliver a great retirement service for all our customers.”

Alan Higham, Chairman of Annuity Direct and Head of Retirement Insight at Fidelity said: “At the start of this process, I decided that the most crucial factor for me was that the company we chose to work with shared the very same values as Annuity Direct. Annuity Direct has an outstanding and highly trained team who like me, believe that nothing should compromise the level of service provided to customers. Having worked with Fidelity for almost two years now in the workplace savings market, as well as getting to know a number of people there, I know that this is absolutely the right fit and therefore the right decision.  I am extremely positive about what the future will bring and what Annuity Direct and Fidelity will be able to do together to really make a significant difference to people’s lives in retirement.”

Retirement