DPI Financial Services director Dennis Burling recently recommended a client increase their whole-of-life benefits during a review, which resulted in an increased premium.
But when Burling chased the extra commission due, L&G told him it was not paying commission on top-ups as it felt the practice was no longer in clients’ best interests. The decision also applies to unit-linked term insurance and critical-illness policies, according to L&G’s literature.
Burling says: “L&G insists that this is not a breach of their obligations but I feel it is a stab in the back for advisers who sold such policies in good faith on the basis that commission for top-ups and reviews would cover advice costs in future.
“Does L&G have an agenda to push advisers over to fees or is it simply cutting costs to bolster solvency at the expense of the adviser community?
L&G declined to comment.