Scottish Life, the pensions arm of the Royal London Group, has appointed Capita Life and Pensions, a provider of business process outsourcing for the life and pensions industry, to supply specialist investment administration services for the next 10 years.

The agreement will utilize Capita’s Enabler infrastructure, with straight through processing links across multiple asset classes. The service is quicker and costs 60% less than the traditional model. In practical terms, it permits IFAs to access view and value all assets held within pension portfolio via one platform and also enables IFAs to trade in equities and funds.

This significant contract helps yet another financial services product provider deliver a more complete service to IFAs, which encapsulates the aim of the whole Enabler initiative, commented Graham Coxell, Capita’s financial services, business and commercial development director. It will also allow Scottish Life to quickly establish a low-cost high-value distribution model in the highly-competitive SIPP market.

This contract will no doubt prove useful to Scottish Life’s plans to launch a self invested personal pension, or SIPP, product in December. These new SIPP facilities will be available from pension portfolio, the recently rebranded extension of Scottish Life’s existing individual personal pension product.