It has also announced that a new company, Legal and General Partnership, has been created as a vehicle for the Principal firm. But the company still hasn’t revealed its fees.
Graham Newitt, managing director, Intermediary Solutions, defended the decision to holfd back on the fees announcement.
He said: “We do not do not need to earn a profit from running our network so we will be announcing a charging basis that will offer excellent value for money for the services we are providing.”
However, L&G’s failure to reveal fees has been heavily criticised by other prospective Principals.
Matthew Bright, managing director of Optoma said: “If they are still not revealing their fees, what have they got to hide?”
Sally Laker, managing director of Mortgage Intelligence expressed concern that brokers would not have enough time to make important decisions unless a major player like Legal and General revealed its full proposition. She said: “Brokers really need to make decisions now, but how can they without all the information to compare?”
Newitt said: “I believe there will be a flight to quality as the various propositions are rolled out and Legal and General’s will be the best in the market.”
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