One reader expressed the concerns of many about the surprise
Manulife buyout of Standard Life in Quebec, fearing that some of Standard’s older clients may not have the same options with the new owners.
The article, ‘Consolidation concerns following Manulife buyout,’ quoted industry expert and Canadian Life columnist Jim Ruta as saying “I worry about the concentration of that much market power in the hands of one firm. Standard Life was a tremendous organization with some great product. I think that product may or may not survive the cut. I hope it does.”
A reader who identified themselves as a Burlington Advisor agreed with Ruta’s take on the deal.
“I too am very disappointed in this news and agree with Jim Ruta's comments,” wrote the reader. “Clients placed their trust and investments with Standard Life because of their 180 year history in Canada - never thinking they would not be here one day.”
The reader cited the performance of the funds, low MER's “and the high service level at Standard Life that cannot be matched by Manulife.
“Clients will be disadvantaged by this merger, especially older clients (80+) who have very limited options of where to move their money if they do not want to be a Manulife client,” added the reader.
It was on September 3 that Manulife Financial Corporation (MFC) announced that The Manufacturers Life Insurance Company (MLI) and Standard Life Oversea Holdings Limited, a subsidiary of Standard Life plc, have entered into an agreement under which MLI will acquire the Canadian-based operations of Standard Life plc for approximately $4 billion in cash at closing, subject to certain adjustments
