Isobel Langton, chief executive of Royal London Intermediary, has revealed the insurance giant is currently in informal discussions with advisers over how it can deliver an impartial service to those not sufficiently catered for by the Treasury’s Pension Wise guidance offering.
In the latest FTAdviser video interview, Ms Langton said the insurer was in talks with several businesses about bridging the gap between full blown advice and the guidance guarantee.
The provider has previously announced its intention to launch a ‘discount’ advice proposition for mainstream pension savers; and last year chief executive Phil Loney told a Lords committee more widespread reforms were needed to ensure help was offered beyond the guidance guarantee.
However, Ms Langton said the insurer was unlikely to get going on work to come up with an affordable advice proposition until after the new pension freedoms come into force in April.
She said: “We really do believe in impartial advice. Through our intermediary division we are looking at how we can work with advisers to try and make professional advice affordable for middle Britain.
“We are looking at doing that through tools and through our proposition and through working closely with advisers.
“At the moment we are just starting initial inquiries really with advisers to see where we could work together to provide a service for those customers of Royal London who can’t afford advice and adviser can’t afford to advise them in the normal way.
“Given all the pressures that we have got, it is not really something that we are going to be focusing on until beyond April.”
The comments come amid calls from a number of quarters for a ‘second line of defence’ for those mainstream consumers that require more support than is offered by the guidance guarantee, or who for whatever reason do not take up the one-time offer.
They also come as Steve Webb, pensions minister, called for providers to be given latitude to have more robust discussions with clients over their plans without straying into full advice, in order to help prevent a surge in unregulated investment and probable future losses post-April.
emma.hughes@ft.com
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