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.”