Legal & General is closing its with-profits fund to new business following a slump in post-RDR sales.
The fund is closing with effect from tomorrow. It will continue to accept investments into existing with-profits plans, including new members to existing group personal pensions.
Switches into the policies will also be accepted where allowed, and existing regular contributions to endowments can continue.
L&G says it has taken the decision to close the fund as new business is no longer “substantial”.
L&G managing director of mature savings Jackie Noakes says: “We have seen a continued fall in investments into our with-profits fund, especially since the inception of the RDR.
“As these new business levels can no longer be defined as substantial, we have taken the decision to change the regulatory status of our fund to ‘closed’ in accordance with the Conduct of Business Sourcebook.
“We will continue to deliver active investment management in the best interests of our with-profits customers.”
L&G will write to customers to inform them of the move as part of its next with-profits bonus announcement, due on 19 February.
Pension savers will receive a separate letter by the end of May.