The managing director of the life division of Abbey National, Mr Graham Pottinger, is seeing the first buyers' strike in equity-linked products since he joined the company almost a decade ago. "Nobody really knows how to call the turn on this and investors are sitting on their hands in the meantime."

Based in Abbey National's Glasgow headquarters, Mr Pottinger's division includes Scottish Mutual, Abbey National Life and, most recently, Scottish Provident.

"Over the years we have tended to promote a particular product in our range that the market has an appetite for; at the moment, there is no appetite for straight equity."

Mr Pottinger does not believe the slump in global equities will derail new pensions business. The question now is not whether individuals need to save for their pension, he says, but where they want to direct their funds. He predicts a greater concentration on bonds and even cash.

"It will be more difficult to sell long-term savings products in general and we'll have to be innovative. I don't see people wanting to risk their money but, unless we believe the historical record of long-term growth in equities has changed for good, new cash flow is bound to return to the stock markets."

Things will become clearer when the current period of uncertainty passes, Mr Pottinger believes.

"The market seems to be unsure of direction at the moment because of unfolding external events."

But Mr Pottinger is confident that the life division of Abbey National can withstand any changing trends.

"We've developed a business over the years in pensions, investments and protection, and now we really think we have everything."

The company that has everything announced last September that it was going to acquire the mutual Scottish Provident, subject to member approval. An overwhelming majority of members voted for demutualisation, putting 73,000 eligible Irish members in line for a windfall, to be paid in the New Year.

Mr Pottinger spent many months involved in the tortuous demutualisation process and the takeover was finally completed on August 1st last.

"The whole thing took up an awful lot of resources, particularly on the actuarial side. We were preparing for demutualisation but also tidying up the members' database so that, when we come to pay the actual purchase price, we'll get it right and pay people the right amount."

The calculation of members' compensation is virtually complete and Scottish Provident is back to business as usual. "It's been a huge drain on resources but we've done what we can to hit the ground running."

So what plans has Abbey National for Scottish Provident Ireland? Mr Pottinger sees great potential in new and existing product areas. "We're not actively involved in the protection market, for example, so if we could take a decent share of that market, that would really give us a step up."

Scottish Provident Ireland has traditionally concentrated on the with-profit bond market but Mr Pottinger expects the demutualisation to open up much greater growth opportunities.

"For the past two or three years, we've been operating with one hand tied behind our back because of the capital constraints that we suffered from. It will give us huge scope not to have that cramping our style."

Mr Pottinger rejects any suggestion that Abbey National would consider selling off Scottish Provident Ireland. "There has been some comment along those lines and that kind of comment just fails to understand what Abbey National is all about. A lot of people seem to think that Abbey National only bought Scottish Provident for its UK end but we were very clear that we had an interest in the Irish operations.

"What we saw in Scottish Provident Ireland was a chance, for the first time, to have a company on the ground in the euro zone. This is very attractive to us as it will give us valuable experience and the last thing on our mind when entering into negotiations was to sell off what we see as core business."

Abbey National relishes the prospect of building up Scottish Provident Ireland. "What this Irish business is all about is taking something, which has been relatively moribund for all the reasons we know about, kick starting it and growing it into something really big."

The British bank entered the life assurance and long-term savings market in 1992 with the acquisition of Scottish Mutual. Abbey National consolidates businesses by running them as a single unit - but it has held onto brands because it values brand names.

"What we've done with Abbey National in the UK is we've covered off most ways the consumer might want to access long-term savings products, whether it's through a broker, a branch or a Government savings scheme. It's been a distinct strategy to exploit all these brands for that purpose."

Mr Pottinger describes the British market as oversupplied. "There are too many life and pensions companies and investment companies, and there has been a gradual shaking out of some of the players, and some takeovers."

In Mr Pottinger's view, the person getting the most out of the supply chain is the consumer. "The people who are being squeezed are the product providers and to some extent the distribution networks - where they are working quite hard for their commissions."

Scottish Provident Ireland will be concentrating on the broker market in the Republic. "We think there's a chance for Scottish Provident to become the biggest company in the broker market. There's no reason why not.

"We will not be a company that is trying to be all things to all men by trying to sell through every conceivable channel.

"We'll concentrate on the broker market and I think the brokers will like that and give us credit for it."