L&G confirms restricted plans as profits rise
Pensions, insurance and investment giant Legal and General has confirmed plans to deliver a restricted advice solution for key distribution partners post-Retail Distribution Review, as it published its results for the first half of 2012.
Reporting its financial results for the first six months of the year, the company also reported a 5 per cent rise in operating profit, rising to £518m from £493 for H1 2011.
The growth is based primarily on a £36m rise in risk performance, which in H1 2012 increased to £272m from £236m.
L&G Investment Management also reported a £1bn rise in net inflows, which reached £4bn for the period compared to £3bn for the first six months of 2011.
A financial statement from the company predicts growth in the wider restricted advice market post-RDR, and adds: “We also believe that RDR will increase customer demand for low cost funds.
“We expect an increase in flows into retail passive funds, attracted by our low cost capability in passive management.”
The company has extended its long-standing relationship with Yorkshire Building Society, now including the Chelsea and Norwich & Peterborough building societies, and is developing new relationships with Leeds Building Society and First Trust Bank of Northern Ireland.