LV= puts MPS plans on hold amid pension system overhaul

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.”

Recommended

LV= cashes in on DB transfer boom as advice income jumps 25%

LV= is the latest provider to reveal a boost to its pensions and advice businesses as savers cash in their defined benefit pensions in favour of defined contribution schemes. In its annual results this morning, LV= says that DB transfers contributed to double digit growth in its pensions portfolio, and that turnover from retirement advice […]

3

Pensions ombudsman rejects complaint over LV= Sipp transfer

The Pensions Ombudsman has rejected a complaint against LV= after a customer lost £16,000 while transferring into a new pensions policy. Mr H complained that LV= failed to act on his instructions to cash in and reinvest his portfolios while in drawdown. The transfer represented an internal transfer from a LV= pension policy to a […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg
94

How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]

A guide to automatic re-enrolment

Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment