Sovereign drops $1m incentive for advisers

By MARK FRYER

Financial services company Sovereign has dropped a planned $1 million prize for financial advisers who sell its products.

The firm had planned a promotion in which advisers who reached certain sales targets would go into a draw for the big prize - with more chances if they sold more of Sovereign's insurance, investments and home loans.

Managing director Simon Swanson said the programme was being dropped because it had been "misinterpreted as throwing money all over the place when what it was actually doing was supporting people in the development of their businesses".

Sovereign said there was no point going ahead with a scheme which could "cause anxiety among our customers and within our industry".

Before Sovereign announced its change of heart, the prize draw was criticised by insurance brokers Stone and Associates as "wasteful and excessive".

With insurance premiums rising, "many New Zealanders will wonder how Sovereign can afford such extravagant incentives."