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L&G to claw back £147k from plans on Cofunds

Legal & General is clawing back £147,000 of commission from cancelled pension policies and bonds executed on the Cofunds platform.

PR manager Mike Connolly says L&G is contacting firms to claw back the cash, which was paid on portfolio plus pension policies and its portfolio bond over the last four years.

Last December, L&G told advisers it would be clawing back £2.4m of commission from cancelled pension policies after a sweep of unclaimed clawbacks.

But Connolly says: “Having looked at the clawback pos- ition on some of our pension products earlier in the year, we are considering whether we can also apply the same clawback process through Cofunds. In this case, it is a very small number of companies involved so they will be contacted individually.

“It is a relatively small amount which indicates that Cofunds’ business has been persistent.”

The move comes after L&G switched from a manual system to an automated process. The system enables the firm to look back over four years to see if the manual system has failed to pick up on any polices that have been terminated or cancelled within the clawback period.

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