58 Business overview  Results of operations – United Kingdom Immediate annuity Organizational structure Overview of sales and distribution channels  Sales and distribution Pensions Platform Corporate pensions Overview of business lines  Individual protection Annual Report 2013 Aegon UK plc is Aegon UK’s principal holding company. It was  registered as a public limited company at the beginning of  December 1998. Aegon UK’s leading operating subsidiaries are: Aegon UK’s principal means of distribution is through the  intermediated financial advice channel, which is the main sales  route for long-term savings, protection and retirement products  in the United Kingdom. The advisors provide customers with  access to various products, depending on the advisor regulatory  status, together with advice on the solution that best suits their  financial needs. Aegon UK provides a full range of personal and corporate  pensions. The company also offers investment products,  including ISAs, General Investment Accounts (GIAs), offshore  bonds and trusts. Individual protection products are distributed through  intermediated advice channels. Annuity products comprise  internally vested immediate annuities and those available  through intermediated advice channels. In the United Kingdom, funds in pension plans are generally  converted into a source of income at retirement, usually through  the purchase of an immediate annuity. Aegon Retirement Choices (ARC) helps advisors and their  customers with the transition from work to retirement efficiently  and effectively through a technology-driven platform. Aegon  UK has deployed leading edge technology to the platform,  delivering an intuitive method of saving for retirement through  the workplace, taking income in retirement, and dealing with  changing circumstances. It also provides valuable online  reporting and lifestyle tools that enable advisors to demonstrate  their professionalism and display their charges for advice in  a transparent way. Professionalism and transparency are key  principles of the Retail Distribution Review which came into  effect on January 1, 2013. In addition to the self-invested  personal pensions (SIPPs), which provide a range of pre- and  post-retirement investment options for high-net-worth  customers, including insured funds and real estate, the platform  also offers ISAs and GIAs. In all, there are an estimated 25,000 registered financial  advisors in the United Kingdom. Until December 31, 2012, these  advisors were classified as either single-tied, multi-tied, whole  of market or independent, depending on whether or not they  were restricted in the number of providers they represented. The  Retail Distribution Review came into effect on January 1, 2013.  From this date, retail financial advisors have been classed as  either independent or restricted and are remunerated directly by  the customer based on the service provided. Aegon UK continues  to maintain strong links with financial advisors in all segments  of the market. This registration excludes corporate advisors and  Employee Benefit Consultants (EBCs).  A dedicated team supports our key corporate advisors and  corporate strategic accounts.  As mentioned above, Aegon UK is also developing new  distribution opportunities, including agreements with banks and  affinity partnerships with organizations outside the industry.  Barclays and Mercer are examples of companies with which  Aegon UK has established a commercial partnership in 2013. One of Aegon UK’s largest product lines is providing pension  plans for companies. Aegon UK offers group pension solutions  on- and off-platform, depending on the needs of the employer  and employee. In the United Kingdom, Pensions Reform  (automatic enrollment) is expected to have a dramatic effect  on the workplace savings market, increasing the number of  employees who will engage with saving through their employers’  pension arrangements.  The Aegon UK life business primarily comprises individual  protection and individual annuities.  The move away from 'defined benefit' (DB) arrangements, which  provide a guaranteed percentage of salary on retirement, toward  'defined contribution' (DC) plans has continued to accelerate  in recent years. DC plans are similar to personal pensions, with  contributions paid into a plan owned by individual employees and  then invested. Generally, at retirement, employees can choose  to take a percentage of tax-free cash from their pension plan,  using the remainder to either purchase an annuity or invest it in  a separate drawdown policy. Aegon UK offers a range of products for individual customers,  including life cover, critical illness and income protection. It also  provides products for companies wishing to insure key personnel.  Life Aegon UK has two business lines: ■ Life; ■ Pensions. ■ Scottish Equitable plc. (trading as Aegon); ■ Aegon Investment Solutions Ltd.