Your Industry  

LV in government talks about robo-advice rollout

LV in government talks about robo-advice rollout

LV is in talks with the government about rolling out its robo-advice proposition to consumers with smaller pension pots.

Speaking to FTAdviser, Richard Rowney, newly appointed chief executive of LV said: “We are in advanced talks with the Treasury and government about how we can provide this [LV’s robo-advice propositon] to people with smaller pension pots as a free tool.

“We are in discussions about how to broaden advice to anyone who needs it - it goes back to our mutual values.”

Article continues after advert

Mr Rowney added there is a great underserved part of the population where LV may be able to help bridge the advice gap.

He said: “Robo-advice will be one of the trends that redefines the market over the next three to five years.”

Mr Rowney also added that his firm is very happy to white label its current proposition, which provides fully regulated automates advice for £200 to “anyone who wants to use it”.

“This is how modern financial advice will be delivered - this combined with the pension passport could take a lot of hassle away from the customer. We are working with corporate partners and financial advisers to power up this business.”

Mr Rowney told FTAdviser the mutual had put aside in the region of £10 to £15m to invest in its retirement business over the next 18 months, which would be aimed at technology and new propositions and solutions.

In terms of trends in the pattern of consumers post freedoms, Mr Rowney said LV was currently seeing people combine the best of drawdown with some of the guarantees from annuities.

He said: “We’ve seen a surge of consumer demand for savings products that have guarantees and smoothing.”

It was announced earlier today (17 June) that Mr Rowney would take on the role of chief executive of LV later this summer.

He is currently managing director of the firm’s life and pensions business, having originally joined in 2007 as chief operating officer.

Prior to that, he spent 14 years at Barclays, in a number of senior positions across corporate and retail banking.

Mr Rowney succeeds Mike Rogers, who earlier this year announced he planned to step down as chief executive after 10 years in the role.

Adviser View

Matthew Harris, director of Edinburgh-based Harris Independent Financial Advice said there is still an underserved area of the population in terms of smaller pots, in part due to the fact that many advisers have minimum fees.

He said: “We would always have concerns about any company which recommended the product which is provided by the same platform.

“Nevertheless it is good that something a bit more sophisticated is coming for those people who have particularly small pots to invest and don’t want full financial advice.”