Legal & General (L&G) has announced details of adviser payments on individual retail products post implementation of the Retail Distribution Review (RDR).
The key details are:
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Our range of investment and pensions products, both new and legacy, will be RDR compliant on 31 December 2012. (excludes With Profits Bond - see Appendix One for go live dates)
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Post RDR the new range of L&G products available to the adviser community will offer nil commission pricing and this will be reflected in lower prices. For example; for Select Portfolio Bond the product charge is 0.5%
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L&G will support facilitated adviser charging (FAC) across a core product range for new investments including Select Portfolio Bond, International Portfolio Bond, Suffolk Life SIPPs, Annuities (Pensions and With Profits), Cofunds Pension Account, Unit Trusts, and With Profits Bonds. From 14 December, L&G products with insured funds will only be available off platform
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Trail commission will be paid on existing products that continue unchanged post 31 December 2012 and for non-advised top-ups on existing products (including regular premium contracts). In addition, for advised top ups where we are not permitted to pay commission we will, where possible, enhance the terms customers receive.
Jamie Vale, Director, Business Development, Platforms and Distribution said: "The success of RDR depends on delivery of the best outcome for our customers in terms of access to advice and affordable products. We believe that does not just mean delivery of a full ‘RDR compliant' product range by the end of the year, but delivery of one of the lowest charging propositions for the adviser market. We are confident that the low product costs for all our nil commission range of investments and pensions will help advisers to manage their own charging structures as they transition to RDR. Our research shows that 4 out of 5 consumers, regardless of income, prefer to pay for advice through the product they are buying. That is why we have focused on creating a wide range of new core products that offer FAC."
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