Legal & General Network confirm no fee increases for Appointed Representatives.
25 October 2012
With several Networks having announced fee charge increases for their appointed representatives over the last few weeks, Legal & General Network (LGN) have today confirmed they are fixing their current charges for existing services for mortgage, protection and GI business until January 2014.
LGN takes its appointed representative fees from one source, a small percentage of the procuration fee. There are no firm fees, no adviser fees and no overall percentage of turnover fee. Just one simple charge and the amount charged taken from the procuration fee has remained unchanged since M-Day in 2004.
Duncan Crocker, Managing Director, LGN said,
"We believe it is important to our partner firms to be able to plan with confidence, particularly in these times of economic turbulence and regulatory shifts, especially with RDR looming and the MMR just behind it. So we are happy to announce that the fees we charge our appointed representatives for their mortgage and protection business will not change, at least until the start of 2014 unless there are any new regulator costs imposed that we are not expecting.
In fact we have not changed these fees since M-Day and our partner firms have benefited from this simple clear and stable arrangement for the last eight years and we believe they represent great value for money. We are a profitable business and are a critical strategic component of Legal & General's intermediary strategy.
Firms who join us do so with confidence, that these fee charges will not be moving for at least the next fourteen months. Thereafter we will undertake our regular periodic review in the light of market conditions and our cost base. Simple and stable fees, excellent development support, bespoke training and the reassurance of working with an established and financially strong company are compelling reasons to be with LGN."
LGN's fees structure for wealth management business, taking into account the changes that will be required for RDR will be announced later this year.
Notes to editors
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions. The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 30 June 2012, we were responsible for investing £388 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in or our life assurance, pensions, investments and general insurance plans.
For more information please contact:
PR Manager, Legal & General Group
t: +44 (0) 20 3124 2092
m: +44 (0) 7764 582574