Is RDR Working?
16 January 2013
At a briefing at the Merchant Taylors' Hall in Threadneedle Street, London on Tuesday (15 January), Legal & General delivered an early glimpse of RDR in practice in high streets across the UK.
Although the deadline for introduction of the RDR new rules was 31 December 2012, the company introduced the new approach early (on 16 November last year) in over 1,300 branches of banks and building societies across the UK.
Chris Last, Legal & General Managing Director Banks and Building Society Partnerships said; “We have been advising customers under RDR rules for six weeks and have seen over 1,500 people in branches across the UK.
These customers are clearly happy with the services they’re getting and the business levels we are seeing on the back of these appointments show no change from pre RDR levels.
The message is that RDR is working on the high street and access to financial advice and services did not end on R-Day, 31 December last year.
With our bank and building society partners we are successfully delivering a mass market proposition that provides the kind of advice people need at an affordable price.”
Personal finance expert, Jasmine Birtles said: "We are out of the starting blocks but I don’t think RDR goes far enough.
Ideally I would like to see it cover mortgages and insurance with all advisers being independent offering a ‘whole of market’ advice.
However, for the mass market and middle income consumer, the financial advice being offered on the high street by a few organisations should, for the moment at least, fill the gap left at the lower end of the market now that the banks have largely pulled out (of advising people with less than £100,000 to invest)."
Paul Kaye, General Manager Sales, Leeds Building Society commented: “For well over a decade, we have provided our members with access to regulated investment advice that complemented our traditional building society savings accounts.
This has been very successful and the feedback we have received is that our members valued this service.
Furthermore, our Board held the view that at a time when many other high street institutions are turning their backs on this type of service, with some focusing solely on high net worth customers, Leeds Building Society should continue to offer an advice service.
This also fits with our strategy of focusing on personal service through our ‘local feel, national presence’ ethos and meeting the needs of a wide range of members.”
Legal & General have sole tie distribution partnerships with Yorkshire, Leeds, Dudley, Tipton & Coseley, Cambridge and Leek United building societies, amongst others, plus Virgin Money (which was Northern Rock). In addition we provide financial products and services to Nationwide, which together represent 87% of the building society customer bases - a population of around 20 million account holders in all.
All our advisers are qualified to the same standard - QCF Level IV minimum standard for both independent and restricted advisers. In banks and building societies our financial consultants offer a restricted advice service.
RDR Product range.
Our product range includes ISAs, Unit Trusts, Select Portfolio Bond, International Portfolio Bond, Suffolk Life SIPPs, Annuities (Pensions and With Profits), and a range of Protection products to meet customers insurance needs.
Notes to editors
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
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Registered in England 166055.