L&G reveals RDR adviser charging proposition

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Legal & General has announced details of its adviser charging proposition ahead of the retail distribution review.

The provider will support adviser charging across a core product range for new investments including its Select Portfolio Bond, International Portfolio Bond, Suffolk Life Sipps, pensions and with-profits annuities, Cofunds pension account, and unit trusts.

In addition, from 14 December L&G products with insured funds will only be available off platform.

The provider will also launch a new with-profits bond in February 2013. The bond will not facilitate adviser charging initially, although L&G plans to introduce this facility later in 2013.

Trail commission will be paid on all existing products and for non-advised top ups on existing business.

L&G platforms and distribution business development director Jamie Vale says: “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.”

LG RDR Proposition 480