Cofunds opts for open architecture to replace L&G bond

Cofunds is to replace the Legal & General (L&G) onshore bond with an open architecture version, in a move it says will help advisers better manage their investment propositions on the platform.

L&G has provided Cofunds’ onshore bond option since 2006, providing access to over 300 insured funds. Cofunds said removing the bond from its platform was mutual decision taken with L&G becuase the wrapper was not retail distribution review-ready. It added it was in talks with a number of providers over powering an open architecture wrapper, and would keep L&G’s offshore bond, which is open architecture.

The L&G onshore bond stopped being available for new customers on 31 December 2012. Existing customers can still top up on the bond.

Verona Smith (pictured), marketing director at Cofunds, said: ‘This bond will drive efficiency as model portfolios will be able to go across a clients’ whole holdings regardless of wrappers. This comes from demand from our advisers and it is all about making the investment proposition more efficient and being able to run through all the wrappers.

‘The current onshore bond is insured at the fund level but the new one will be at the underlying collectives level.’

Smith added that the platform may following wrap provider Nucleus in offering access to annuities through the platform. ‘We’d like to do that in the future because as clients get older their needs change. We’d probably work with a third party for their expertise but haven’t decided on who yet as different providers have different specialities,’ she said.

L&G is understood to be in the midst of talks to acquire Cofunds. News of the proposed deal first broke in November 2011, and talks have focused on the price of a deal.