Legal and General is shaking up its business model for mortgage business, as it is beginning to wind down its appointed representative network.
The firm is moving towards concentrating on distributing through directly authorised brokers.
Speaking to FTAdviser, Martin Noone, managing director at Legal and General said that broadly speaking, Legal and General was allowing its firms to choose a business model which better suits their needs.
“We’ve done this on the back of a series of suggestions from our partners [who have been] saying that for Legal and General it has been difficult to develop this proposition in the restricted way.
“We’ve said that we’ll work with the partners to seek alternative business models that suit them instead of being a single tie representative of Legal and General.”
Mr Noone said that there were six or seven key partners that Legal and General had been working with and that the priority was to make sure existing customers understand what’s going on and are well communicated with, as well as Legal and General giving advisers a degree of freedom.
“They [advisers] were finding it quite difficult to grow and develop new customers with a limited wealth proposition.”
ruth.gillbe@ft.com
