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L&G admits it pushed for the 1% regime

Legal & General is coming under fire from IFAs for boasting that it actively promoted 1 per cent charges on stakeholder from the outset of the planning for the product.

L&G says it was the only insurance company at the Government&#39s earliest working parties on stakeholder agreeing with a 1 per cent charging cap.

In a break from much of the rest of the industry, L&G claims stakeholder can be sold without advice, despite admitting that decision trees in their current form have flaws.

It says decision trees filter out people needing advice from those who do not, reducing costs and allowing providers to operate within the 1 per cent charge cap.

Head of public relations John Morgan says: “We knew changes were coming, so we implemented them. Any intermediary who feels a person with no pension needs full advice on whether they buy a pension is incorrect. People who need advice will get it but they should not be charged for what they do not need.”

Informed Choice managing director Nick Bamford says: “Stakeholder is not a simple product. It is a cheap product. Believing cheap means simple is incredibly naive.

“Once you take advice out of the equation, you are on dangerous ground. L&G should not marginalise the distribution channel that has been the cause of its success.”

Torquil Clark pensions development manager Tom McPhail says: “L&G seems to have been pursuing its own agenda at odds to the rest of the industry.

“They have been distributing direct to the public and not taking account of their IFA business.”

Recommended gives stakeholder guidance

Financial services website is offering details of stakeholder providers and guidance on the new pension although the company is steering clear of the market.The site&#39s stakeholder wizard sits alongside similar guides for products sold by the company, including Isas, mortgages and personal loans. The interactive tool gives details on charges and fund choices to […]

Tender deal to boost IFAs in benefit battle

New online services firm Pensions Treasury is aiming to help IFAs attack the markets which are generally dominated by employee benefit consultants. Former Hargreaves Lansdown head of e-commerce Mark Rowlands is managing director of the firm which matches big employers wanting to ensure they are stakeholder-compliant with IFAs who advise on stakeholder and group personal […]

It&#39s sink or swim time

Levels of enthusiasm for the stakeholderlaunch differ depending on the level of the IFA&#39s commitment to selling pensions, the amount of preparation already done and scepticism over the product itself. IFAs are used to being told of the importance of being able to hit the ground running on April 6. Misys head of marketing Andrew […]

Principality Building Society – Discount Option 2

Thursday, 5 April 2001.Discounted term: Until June 30, 2006.Discount: 2.66 per cent until December 31, 2001, 1.66 per cent until December 31, 2002, 0.66 per cent until June 30, 2006.Payable rate: 4.29 per cent until December 31, 2001, 5.29 per cent until December 31, 2002, 6.29 per cent until June 30, 2006.Minimum loan: £5,000.Maximum loan: […]

Rise of the machines

Head of Sustainable Investing at Royal London Asset Management, Mike Fox, looks at the case for including artificial intelligence within a sustainable investment strategy. Read the article in full here The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get […]


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