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LV= to change marketing material after IFA client poaching concern

LV= is amending its client communication package after an IFA complained to Money Marketing that its marketing literature undermines advisers.

Pete Kerans Mortgages director Pete Kerans complained to Money Marketing that the LV= Membership Matters package for new members undermined his relationships with clients and sought to secure direct business. The eight-page package is sent to all new LV= customers and promotes the firm’s insurance, investments, retirement planning, car, pet, home insurance and will-writing service.

It mentions IFAs just once – on the back page, stating: “Our life, health and retirement products and services might be right for you. To find out, speak to a financial adviser.”

Kerans says: “My view is that by failing to identify the role of the client’s IFA, LV= has undermined my relationship with my clients. It has also aimed to undercut me by offering discounts on insurance products.”

LV= says the package will now acknowledge the IFA in the cover letter. It says it is also removing information in the cover letter about its insurance, investment and retirement products.

A spokeswoman says: “We already ensure we differentiate our communications to IFA clients and direct customers. We are reviewing the information on discounts available to members on our general insurance products, which are not traditionally sold through IFAs.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. What LV actual said when I complained was ‘my clients are members of LV and they send this marketing to all LV members, my clients should know that they have an IFA anyway’

    Their true colours are further demonstrated by the fact that other than the above phone call they have not contacted me again after being approached by SimplyBiz and Moneymarketing.

    If they think the bulk of IFA’s don’t do General Branch lines they are out of touch, to me they have forgotten the IFA in what should be a two way relationship so perhaps it would be a good idea for ALL IFA’s to forget them for a couple of months when doing product research – Might wake them up to the other half of the relationship.

  2. Well said Pete!

    Happy to take your business from you and get a “free” client then mailshot them to death – You could of course tick the box that states your client doesn’t want to receive any marketing material.

  3. Pete, you’ve demonstrated that you don’t meet the ethical standards I want from an IFA, so I wouldn’t want to do business with you. Given your location there’s little chance of that but knowing how customers might react to finding out that you’re trying to keep information from them and suggesting not including a major player in product searches may be of use.

    I’m unsurprised and not unhappy that LV= haven’t responded more directly to you about a request that in my opinion did not meet the ethical standards that I want to see. I wouldn’t want much to do with you either after such a request.

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