LEGAL & GENERAL INTERNATIONAL (IRELAND) ANNOUNCE RDR CHARGING STRUCTURE FOR OFFSHORE BOND.
10 October 2012
The treatment of adviser payments on International Portfolio Bond both pre and post RDR will be as follows:
Pre-RDR commission based products:
Payments on offshore bonds with start dates pre-RDR will be treated as follows:
- Trail commission on existing products will remain. The client can reduce this but any increase would end trail commission and trigger adviser charging.
- For advised top-ups taking place post RDR on pre-RDR products an initial adviser charge can be facilitated.
- For an adviser change - trail commission can be redirected to the new adviser under instruction from the client.
- Adviser Charging can be facilitated in one of two ways:
- Premium Plus:
This is deducting the charge from the client payment prior to investment in the bond.
- Partial Withdrawal:
This is deducting the charge from the assets in the bond (Note: - this will be treated as a partial withdrawal for tax purposes).
- Under instruction from the client ongoing adviser charges can be altered at any time.
CEO of Legal & General International (Ireland) Ltd, David Fagan said: “We are confident that our offshore bond will be RDR ready well in advance of year end and we will offer a high level of flexibility on both adviser charge payment and trail commission. Provided we have explicit instructions from clients, we can facilitate payment of an adviser charge for both pre and post RDR business. As we are accountable to HMRC for money being paid into and out of a bond, we will closely monitor payments taken from the bond assets, as these will count towards the 5% annual tax deferred withdrawal allowance.”
Advisers who require more information about our International Portfolio Bond RDR charging structure should contact the Legal & General International (Ireland) Ltd Distribution Support Team on 0845 6740 803.
Lines are open from 9 am to 5.30 pm Monday to Friday.
We may record and monitor calls.
Call charges will vary.
Note: Legal & General has enhanced RDR training to adviser support staff to ensure they are well equipped to assist advisers when the new regulations are implemented. We have already released details of how adviser payments on individual retail legacy products will be treated post implementation of RDR. Further details about RDR charging structures for our full product range and distribution channels will be released shortly.
Notes to editors
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
For more information please contact:
About Legal & General
Legal & General International (Ireland) Limited.
Beaux Lane House
Lower Mercer Street
Registered in Ireland No. 440141.
Legal & General International (Ireland) Limited is authorised by the Financial Regulator in Ireland and regulated by the Financial Services Authority for the conduct of insurance business in the UK.
A member of the Association of International Life Offices.
Legal & General International (Ireland) Limited is a subsidiary of Legal & General Group Plc. Registered in England No. 01417162.
One Coleman Street
Registered in England No. 01417162.
Seven Investment Management Limited is authorised and regulated by the Financial Services Authority.
125 Old Broad Street
Registered in England and Wales number 4092911