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L&G unveils post-RDR plans for IFAs

by Michelle Abrego on Nov 15, 2012 at 09:44

L&G unveils post-RDR plans for IFAs

Legal & General (L&G) has unveiled details of adviser charging proposition for its investment and pension products.

The last major provider to unveil its post retail distribution plans, L&G has also launched new products that will offer no commission pricing.

L&G will facilitate adviser charging across a core product range for new investments including the Select Portfolio Bond, International Portfolio Bond, Suffolk Life Sipps, annuities, the Cofunds Pension Account, unit trusts, and With-Profits Bonds.

The majority of products now offer adviser charging, and the rest will be retail distribution review (RDR) compliant by 31 December 2012 with the exception of With-Profits Bonds, which will be RDR complaint on 4 February.

From 14 December, L&G products with insured funds will only be available off platform.

Trail commission will continue to be paid on existing products that are unchanged post 31 December.

L&G will also enhance the terms customers receive for advised top-ups that cut off commission.

Jamie Vale, business development, platforms and distribution director 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.’

To see a full list of providers’ adviser charging propositions click here.

4 comments so far. Why not have your say?

Will Watling (Capita Financial Software)

Nov 15, 2012 at 10:48

Interesting - full details provider by provider & product by product of ACF have been added to Synaptic. Is your AC profile supported by the platforms / providers you expect to use after RDR, or do you expect to send actual invoices for cash settlement?

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Dan Rear

Nov 15, 2012 at 14:09

What'll happen to all their BS 'tied-links' I wonder?

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Christopher Petrie

Nov 15, 2012 at 15:55

They will facilitate AC on annuities, as will many others.

Aegon stand out here, as they will not. By not allowing AC on annuity business, Aegon are effectively making clients pay advisor fees out of the tax free cash, whilst L&G and others allow the fees to be paid via slightly smaller (and taxable) monthly pension payments. In other words AC facilitated through annuity products helps reduce the fees by at least 20%.

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Ian Lees

May 28, 2014 at 08:50

L&G the last provider to provide its post RDR proposition ! Last Again ?

This model of " Core Products " ( will this include Co Funds ? " ) will be useful for L&G to continue to provide their service ( and their standards ) - to the restricted advisers of Restricted Advice practices to replace the dodgy advice provided by bank and building society advisers - who are called " mushrooms " because they are kept in the dark and fed the " manure of a bull ". These undertrained information gatherers - often pass their records ( after completing them to flog their product - which they need to sell to keep their job -I.E. see CEO Nationwide . . .rather than provide good advice with full disclosure - and uninterrupted by the FCA or regulator.

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