Legal & General (L&G) has unveiled the new adviser payment structure for individual retail products, which will be applicable from January 2013 when the Retail Distribution Review (RDR) is implemented.
"The success of RDR depends on delivery of the best outcome for our customers in terms of access to advice and affordable products," said Jamie Vale, L&G's director of business development, platforms and distribution. "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."
L&G has launched a nil commission range of investments and pensions to help advisers manage their own charging structures as they transition to the post-RDR environment.
"Our research shows that four out of five consumers, regardless of income, prefer to pay for advice through the product they are buying," added Vale. "That is why we have focused on creating a wide range of new core products that offer facilitated adviser charging (FAC)."
L&G said that its range of investment and pensions products, both new and legacy, will be RDR-compliant by 31 December, excluding its With Profits Bond; and that the firm will support FAC across a core product range for new investments including its Select Portfolio Bond, International Portfolio Bond, Suffolk Life SIPPs, annuities (pensions and with profits), the Cofunds pension account, unit trusts and with profits bonds.
From 14 December, L&G products with insured funds will be available only off platform. Trail commission will be paid on existing products that continue unchanged after 31 December as well as non-advised top-ups on existing products, including regular premium contracts.