L&G will be issuing new compliant contracts to all its members and as part of this process all prospective L&G ARs will be put through an entry audit.
According to Graham Newitt, managing director of L&G Intermediary Solutions, the majority of firms are expected to pass the audit. Firms that fail will be offered the option of leaving or joining with a firm that has passed the audit. Net procuration fees are expected to remain at current levels with deductions of up to 0.025 per cent depending on the compliance support levels required.
“It is important for agents to understand their overall financial position in order to evaluate network alternatives,” Newitt commented.
Meanwhile Surrey-based Network Data has launched a campaign, entitled L&G-it which aims to help firms break away from L&G without losing pipeline business and renewal commissions.
Richard Griffiths, managing director of Network Data, said: “It is evident from the number of calls we are getting and from visitors to our recent roadshows that many L&G tied agents do not believe it is in their best interests to remain with L&G for any longer.”
