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L&G reveals RDR adviser charging proposition


Legal & General has announced details of its RDR adviser charging proposition.

The provider will support adviser charging for new investments across a core product range including its Select Portfolio Bond, International Portfolio Bond, Suffolk Life Sipps, pensions and with-profits annuities, Cofunds pension account and unit trusts.

In addition, from 14 December L&G products with insured funds will only be available off platform.

The provider will launch a new with-profits bond in February 2013. The bond will not facilitate adviser charging initially, although L&G plans to introduce this facility later in the year.

Adviser charging will not be available on any of L&G’s remaining legacy products. Trail commission will be paid on all existing products and for non-advised top ups on existing business.

Where an advised top up is made, L&G says it will be able to continue paying trail commission on the legacy assets in most cases. If this is not possible, L&G says it will offer the client improved terms on the contract.

L&G platforms and distribution business development director Jamie Vale says: “The success of RDR depends on delivery of the best outcome for our customers in terms of access to advice and affordable products. We believe that does not just mean delivery of a full ‘RDR compliant’ product range by the end of the year, but delivery of one of the lowest charging propositions for the adviser market.

“We are confident that the low product costs for all our nil commission range of investments and pensions will help advisers to manage their own charging structures as they transition to RDR.”

L&G is the latest in a series of major providers to publish their RDR adviser charging strategy in advance of the 31 December deadline.

Last month, Zurich announced it will facilitate adviser charging through its platform, with a number of off-platform products closing to new business.

Aegon, Aviva, Prudential and Standard Life have also set out their approach to adviser charging and the RDR in recent weeks.

Radcliffe & Newlands chartered financial planner Mel Kenny says: “It is good that the providers have come out fairly early with their adviser charging plans because this is really important information. All providers need a sensible, flexible adviser charging proposition because if they do not have one, advisers will go to someone who does.”

LG RDR Proposition 480


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