Legal & General launches post RDR proposition.
15 November 2012
Legal & General (L&G) has announced details of adviser payments on individual retail products post implementation of the Retail Distribution Review (RDR).
The key details are:
- Our range of investment and pensions products, both new and legacy, will be RDR compliant on 31 December 2012. (excludes With Profits Bond - see Appendix One for go live dates*)
- Post RDR the new range of L&G products available to the adviser community will offer nil commission pricing and this will be reflected in lower prices. For example; for Select Portfolio Bond the product charge is 0.5%
- L&G will support facilitated adviser charging (FAC) across a core product range for new investments including Select Portfolio Bond, International Portfolio Bond, Suffolk Life SIPPs, Annuities (Pensions and With Profits), Cofunds Pension Account, Unit Trusts, and With Profits Bonds. From 14 December, L&G products with insured funds will only be available off platform
- Trail commission will be paid on existing products that continue unchanged post 31 December 2012 and for non-advised top-ups on existing products (including regular premium contracts). In addition, for advised top ups where we are not permitted to pay commission we will, where possible, enhance the terms customers receive.
Jamie Vale, Director, Business Development, Platforms and Distribution said: “The success of RDR depends on delivery of the best outcome for our customers in terms of access to advice and affordable products.
We believe that does not just mean delivery of a full ‘RDR compliant’ product range by the end of the year, but delivery of one of the lowest charging propositions for the adviser market.
We are confident that the low product costs for all our nil commission range of investments and pensions will help advisers to manage their own charging structures as they transition to RDR.
Our research shows that 4 out of 5 consumers, regardless of income, prefer to pay for advice through the product they are buying**. That is why we have focused on creating a wide range of new core products that offer FAC.”
* See Appendix one.
** Source: PwC RDR research among 3,988 consumers conducted March 2012
Information for financial advisers:
Full details of our RDR adviser proposition are given in our RDR Proposition Brochure, which is available to download on our dedicated adviser centre website www.legalandgeneral.com/advisercentre/rdr
RDR Product range.
|Product||New or Existing||Go live date 2012||FAC|
|Select Portfolio Bond||New||31 December||Y|
|With Profits Bond||New||4 February 2013||Date tbc|
|International Portfolio Bond||New||Available now||Y|
|Portfolio Plus Pension (insured fund range)||New||31 December||N|
|Suffolk Life SmartSIPP||Existing||Available now||Y|
|Suffolk Life MasterSIPP||Existing||Available now||Y|
|Cofunds Pension Account||Existing||Available now||Y|
- Portfolio Plus Pension
- Suffolk Life range
|Pension Annuity (including variants)||Existing||26 November||Y|
|With Profits Annuity||Existing||26 November||Y|
|Unit Trusts||Existing||Available now||N|
Y = facilitated adviser charging available from go live date
N = product will not support facilitated adviser charging
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 June 30 2012, we were responsible for investing £388 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
For more information please contact:
About Legal & General
Legal & General Assurance Society Limited.
One Coleman Street