Legal & General predicts reduced adviser activity for the rest of the year and into 2013 as advisers focus on RDR business transformation.
Chief executive Tim Breedon says the firm will be focused on growing its workplace proposition and increasing its building society tie-ups. It already has partnerships with Nationwide, Bradford & Bingley and Yorkshire.
L&G first-quarter results, revealed last week, show a 27 per cent year on year fall in new investment business from £10.3bn to £7.6bn and a 6 per cent drop in new savings business from £320m to £300m.
Individual protection business rose by 9 per cent from £33m to £36m but group protection business fell by 20 per cent from £15m to £12m.
Individual annuities rose by 18 per cent from £22m to £26m while with-profits new business dropped by 22 per cent from £36m to £28m.
The firm predicts the start of auto-enrolment for big firms from October will increase schemes and assets under administration. It says it will have a potential auto-enrolment population of 415,000 members compared with 350,000 for the 2011 financial year in addition to existing scheme members secured.
Breedon says: “We anticipate preparation for the RDR will reduce adviser activity for the rest of the year and the early part of 2013 due to the need for advisers to transform their client business models and processes.”
Axxis Financial Planning director Owen Wintersgill says: “There are other factors that could lead to increased adviser activity, such as a recovery in the housing market, but some advisers are leaving exams to the last minute so they are likely to be off the road in the run-up to the RDR.”