New Model Adviser - For Professional Investors

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

L&G reveals charges for 150-strong adviser force

L&G reveals charges for 150-strong adviser force

Legal & General (L&G) has unveiled details of its adviser charging structure for its 150-strong sales force which work in a number of building societies across the UK.

The life company has exclusivity deals with six building societies, meaning their in-house advice service is provided by an L&G adviser who advises on L&G products.

Alongside its deal to provide products for Nationwide’s advice service, these deals give L&G access to around 85% of the UK’s building society assets.

Under the retail distribution review charging structure L&G advisers will only apply advice charges when a client decides to proceed with their recommendation and purchase a product.

There will be 3.5% initial charge and an ongoing annual charge of 0.65% of their portfolio, including sums which have been invested without advice.

Where funds are held on a platform clients will be charged a fee as follows:

  • Portfolios up to £10,000: 0.7%
  • Between £10,000 and £20,000: 0.35%
  • Over £20,000: 0.25%.

The ongoing service for clients includes:

  • Proactive contact from a financial adviser at least once a year
  • A personal report twice a year, showing a breakdown of investments and performance
  • Access to a personal finance website which allows clients to monitor and view their portfolio 24 hours a day, seven days a week.
  • Access to the life company’s online benefit website that allows clients access to monitor and improve health and wellbeing.

There will be an additional 0.5% charge each year for clients who buy an L&G’s Select Portfolio Bond, to cover its set up and management.

In November 2012 L&G confirmed single-tied distribution partnerships with Yorkshire, Leeds, Dudley, Tipton & Coseley, Cambridge and Leek building societies, along with Virgin Money. It has access to around 20 million account holders in the UK.

L&G has around 20 partnerships with building societies, which operate a variety of different models including single tied deals, providing advisers, and sitting on multi-tied panels, said Chris Last, L&G managing director of banks and building societies.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Comment & analysis