The letter brings The Legal & General Partnership another step closer to going live on 31 October 2004.
The Legal & General Partnership will act as Principal for firms wishing to be Legal & General’s Appointed Representatives for Mortgage, Protection and General Insurance sales under the new FSA regulations starting to come into effect from October 2004.
Over the last month a series of Regional Forums have been held to confirm the final proposition for the firm to businesses and to set out the process and time scales for applications to join. Feedback from these forums has been very positive from existing and new partners alike.
The firm, which is seeking to maintain trading relationships with the advisers currently linked to Legal & General, is well advanced with its recruitment plans having already received ‘pledges’ to join from firms representing over 75 per cent of these sellers. The ‘Minded to Authorise’ letter from the FSA means that the formal contracts required to complete this process can now be put in place.
As a further step in readying itself for this October, Legal & General has appointed John Wilkinson to the post of Chief Operating Officer for The Legal & General Partnership. John Wilkinson was previously National Business Director responsible for Legal & General’s Appointed Representatives. Further appointments will be made to the management structure of the Partnership in the next few weeks.
Graham Newitt, Managing Director Intermediary Solutions said, “John’s experience and skills will ensure The Legal & General Partnership gets off to a flying start. John has been instrumental in ensuring we are well on track to meet our target for sellers within our network. So far over three quarters of these have indicated their intention to join the Partnership.”
The Partnership has used its forums to answer detailed questions and explain further operating requirements including the way agents will be charged and remunerated.
Unlike other networks Legal & General is taking the position of not levying explicit fees per firm or per seller. Instead charges will be related to mortgage turnover with no additional charges being made for life and general insurance sales compliance.
Graham Newitt continued “Legal & General has always believed it’s important for agents to understand their overall financial position in order to evaluate network alternatives – income is as important as charges.”
Legal & General has built on its market leading procuration fee levels and nearer the date of regulation will be publishing a full scale of net procuration fees which will take account of all compliance charges, regular fees, such as FSA and FOS fees, and the cost of PI cover.
The company anticipates that it will introduce a new tiering structure based, as at present, on production volumes. Net procuration fee levels will be similar to current levels with deductions being made to cover compliance and support levels typically ranging from zero to 0.025 per cent.
Richard Adams, Managing Director of Stonebridge Mortgage Services said, “It was very nice to hear a positive solution to the issues we face on mortgage regulation. Legal & General’s proposition is innovative, exciting and in my opinion the best network proposition in the market. The forum was very useful in helping Stonebridge Mortgage Services firm up its decisions on mortgage regulation”.
Advisers who want to discuss Legal & General’s good value proposition for Mortgage, Protection and General Insurance regulation should call the company’s special hotline on 0845 7697057 or email [email protected]
