View more on these topics

L&G is looking at two-year commission clawback limit

Legal & General is considering introducing a two-year clawback option on protection business for selected advisers.

It is in talks with some distributors over offering advisers a two-year clawback option on commission payments, alongside the standard four-year model. After two years, L&G would not be able to claw back commission from the adviser if the policyholder cancels their cover, and the adviser would also be able to rebroke the policy.

But an L&G spokesman says: “We are looking at this very much on a case-by-case basis and see no reason to make widespread changes. It would only be available to distributors who submit good levels of quality business and it has to be commercially viable for us.”

Master Adviser IFA Roy McLoughlin says: “It is almost like they are trying to encour- age rebroking. Now that is OK with standalone life cover but, for critical-illness cover, advisers must be careful because certain definitions on the CI policy might have changed for the worse and not be included in a rebroked plan.”

Recommended

Doctor’s orders

Week in week out, I meet IFAs and tied financial advisers who tell me the public simply will not pay fees for financial advice, preferring the use of commission for this advice.

House prices dip 0.5%

UK house prices fell by 0.5 per cent in June according to the latest Halifax house price index.

Firms link up to boost Omo

MGM Advantage, Living Time, Partnership Assurance, LV=, Canada Life and Hargreaves Lansdown are understood to have formed a trade body to promote a greater range of retirement planning options.

Guide

Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment