NORWICH Union has expressed concern at reports that some investment intermediaries have been using the issue of free shares on the company's flotation to sell more Norwich investment products.

Yesterday, The Irish Times was told of a number of instances where insurance and investment brokers had approached prospective clients, urging them to take out Norwich Union investment policies so they would receive an allocation of free shares when the company converts to a public company next year.

Officially, the cut off date for membership of the Norwich Union and the free share allocation was October 1st, but the company gave the insurance broking industry two days to process Norwich Union business they had in the pipeline.

If this "pipeline" business was received by Norwich Union by the close of business today, the new members would qualify for the free share allocation - expected to be a minimum of £500 for with profits policyholders. One person who contacted The Irish Times said that he had been approached by three different insurance brokers urging him to immediately take out a with profits policy so as to qualify for the free shares. The insurance brokers would, of course, receive commission from Norwich Union on the new policies they sell in the two day period of grace.

Norwich Union's general manager (Ireland), Mr Vincent Sheridan, expressed concern at the reports that free Norwich Union shares were being used by brokers to sell new Norwich Union policies. "This two day moratorium was to facilitate intermediaries to complete business that was in the pipeline when the flotation was announced on Wednesday. It was not aimed at selling new business on the basis of free shares," he said.

"The free shares should not be used in any way to market our products and we have told our branches that. We don't want people walking in off the street for this reason," said Mr Sheridan. He accepted, however, that it was more difficult for Norwich Union to police activity by intermediaries.