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Nationwide in investment advice tie-up with L&G


Nationwide Building Society has signed a new single-tie agreement with Legal & General to provide its members with investment products and services.

In a statement released today, the society says it wants to become “the leading high street provider of financial advice” and will create around 150 new jobs to support and advise customers. Tne building society already has a deal with L&G for certain investment and protection products, the new agreement extends the investment partnership until 2016.

The agreement follows a recent review conducted by Nationwide into the financial advice and investment solutions it offers in response to the RDR.

Nationwide divisional director for savings and investments Robin Bailey says: “RDR signals a major change for the whole industry.  Over the last year, we have been reviewing our strategic options and have concluded that Nationwide is best served by staying with a partner that is already providing us with excellent support.

“With the increased number of advisers on hand, Nationwide is well placed to provide professional support and guidance to consumers who are interested in investing for the future.”


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There are 14 comments at the moment, we would love to hear your opinion too.

  1. “The society says it wants to become “the leading high street provider of financial advice”…..

    Rack them high and flog them low…or perhaps they really can reinvent the wheel!!!

  2. Will this be a similar shambles to the Barclays/Aviva combination?

  3. With protection products priced at 30%+ to IFA rates whats in store for customers wanting competitively priced investment products? Are they going to be charging fees or commission based?

  4. Will Nationwide / L&G Advisers tell their clients that they currently receive / pay higher amount of commission on a mortgage protection life policy than an IFA would get and hence a lower premium cost to the client ?
    With RDR – will they be on Fee basis only? – as an IFA will be !!
    i.e – Level playing fields – PS – I’ve already retired

  5. Incompetent Regulators Awards Team 1st February 2011 at 4:07 pm

    Here we go again. Full circle. Compnaies doing deals where they can’t save their asrs*s. Saw this years ago e.g Halifax fell in love with Standard Life, Abbey national in love with Friends, Nationwide with GRE yawn yawn …………………….

    This is the result of very bad and restrictive regulations

  6. If i understand this and RDR correctly, under the current proposals this single tie up with higher commission levels will be restricted advice.. the same as a fee based IFA that does not provide advice on unregulated investments.

    Have the FSA spotted the obvious problem?

  7. They can still take commission as its insurance. If I was a member I would be asking why it was necessary to inflate the cost of the insurance products to pay all of their extra commission which will be distributed back to all members of the society………..

  8. This is definitely a win for L&G. They should benefit nicely from this, with little risk attached.

  9. Why don`t these organisations just bite the bullet and offer a full IFA service with clear fee structure. If not pack up and go the same way as Barclays.

  10. @Duncan Thomas

    Maybe they haven’t, would you care to enlighten us?

  11. I know ales directors who have moved to Nationwide from other banks. Believe me, it will be miss-selling and bullying staff as usual to reach targets. Roll on the next miss-selling scandal !!!!

  12. When Bradford & Bingley reneged on its oft-repeated assurances that it would remain WoM independent and tied to L&G, a substantial proportion of its salesforce quit because L&G were such a nightmare to deal with, as we have always found it to be. So this move on the part of Nationwide, driven as it is purely by commercial considerations, is hardly likely to be great news for its customers.

  13. Christopher Bearfoot 3rd February 2011 at 11:32 am

    Nationwide already provide advice tied to L&G with an investment proposition that has external funds available and this has been the case since they stopped manufacturing their own products.
    Prior to this (1995) they were to tied to Guardian Royal Exchange although they had an IFA arm as well.
    Nationwide’s members/customers are therefore used to having access to ‘vanilla’ products from a single source recommended by a name that they trust.
    The conversation will probably go something like this

    “… and given the choice of all the various investment companies in the marketplace, we drew up a shortlist before deciding to tie exclusively with L&G who are widely known and respected and have a huge depth of exerience. From time to time we review who we use and if we ever believed that another firm would serve our members better ……..”

    Reflecting back on all the moans I’ve read on this site about the death if the Industrial branches / man-from-the-Pru etc, I feel that as a profession/industry we ought to realise that there is a place for players such as Nationwide to look after the masses. Could an IFA serve their clients better with cheaper products / better investment choice / lower charges ?? I would hope so, but at least by still being active they are doing something that will provide some insurance, some pension and some savings for a great swathe of the public that wouldn’t walk through our front doors or pick up the phone to us as they just wouldn’t know where to start.

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