Legal & General has held discussions with Cofunds about the potential expansion of the insurer’s direct-to-consumer bancassurance platform, Investor Portfolio Services.
Cofunds was acquired by L&G in March 2013. The insurer previously held a 25 per cent stake in the platform. The platform provider’s technology is already white-labelled by several D2C platforms.
A spokesman for L&G says: “There may be other future benefits from the Cofunds acquisition that allow us to further develop our own platform service. We already have a D2C platform called IPS and we are looking at how we can develop that.”
Analysts noted last week that L&G was seeking to improve Cofunds’ “scalability”.
Cofunds head of marketing Stephen Wynne-Jones says: “Cofunds is an important digital capability within L&G so it should be no surprise that the senior team wants to see it grow, do more for our clients and become even more profitable.
“We remain focused on inter-mediaries and there are no plans to launch a direct proposition under the Cofunds brand.”
Stiddard director Jason Levett says: “Hargreaves Lansdown has a large range of investments. If L&G and Cofunds want to compete, they need to offer that kind of unlimited nominee service at 25-30bps.”