Legal and General will launch new products with facilitated adviser charging for its post-Retail Distribution Review proposition, with the firm claiming that most clients will prefer paying for advice out of their investments.
Revealing its RDR plans, the firm confirmed that a range of new bond products will include a select portfolio bond, a with-profits bond, and an international portfolio bond, all of which will offer adviser charging.
The company will also offer a new Portfolio Plus Pension, due to go live on 31 December, which will not facilitate adviser charging.
Although new products will not offer trail commission payments in accordance with the RDR, commission will continue to be paid on existing products that continue unchanged after the new year, and for non-advised top-ups on existing products, L&G said.
Jamie Vale, director of business development for platforms and distribution at Legal and General, said: “The success of RDR depends on delivery of the best outcome for our customers in terms of access to advice and affordable products.”
He added that the low cost of L&G’s post-RDR products will help advisers manage their charging structures during the transition.
He said: “Our research shows that four out of five 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 facilitated adviser charging.”
