LV= has paused plans to develop a model portfolio service with technology provider FNZ as it embarks on reviewing whether to replace its entire pensions system.
In September last year, LV= said it was working with FNZ to launch an MPS with a small number of advisers expected to test the service from the fourth quarter of last year ahead of launching in early 2018.
LV= life and pensions managing director John Perks says that project has now been put on hold as the business reviews the system it currently uses for its pensions business.
He says the “injection of capital” following the joint venture agreed last year with Allianz on the general insurance side of the business has allowed LV= to be bolder with its plans.
Perks says: “We are looking to replace our entire pensions system to allow us to be able to move forward, have increased functionality and have a stronger foundation for more digital tools for advisers and their clients to use.”
He says any new system introduced might not be backed by FNZ.
Perks adds: “We’ve put [the FNZ] project on hold while we review our options. That might restart or we may go with a different option that has a managed portfolio business within it.”
Asked if the new plans might include launching a platform, Perks says: “We don’t intend to have the full range of products that might be found on a platform. Our focus is pensions, particularly retirement income.”
He adds: “We see more and more around the ability for clients to aggregate their holdings across our products and other companies’ products will be key to that.”
LV= also has plans to double the number of advisers in its retirement advice service over the next three years. That service currently has 20 advisers.
In its results announcement today, LV= announced it was closing its protection 50-plus product and its protection financial advice service.
Those closures have resulted in 20 redundancies.
Perks says: “We had about 30 people working across the different business areas. The administrative roles are now part of our heritage business and we have moved a couple of advisers and they are being trained up on our retirement income business but the rest were redundancies.”