The Consumer Duty has resulted in Legal and General Investment Management (LGIM) having a lot more conversations with advisers who had never used a model portfolio service (MPS) prior to the regulation.
LGIM entered the MPS market in September 2021, in response to client demand. It now has £75m assets under management and 25 portfolios.
The business’ head of regional sales Antony Teare told Money Marketing that, over the past decade, the market has been moving more towards MPS.
LGIM MPS fund manager Francis Chua added: “We have confidence that this is a process that works.”
The Financial Conduct Authority’s Consumer Duty came into force on 31 July 2023 and aimed to ensure consumers receive ‘fair value’.
The Consumer Duty will be an “ongoing issue” for financial advisers and will remain on the profession’s minds for some time, Teare said.
He believes the Consumer Duty has been a “benefit” for LGIM’s MPS business.
The Consumer Duty was a large amount of work and so it can be hard for a small IFA business to take on, he added.
Chua explained that advisers want more time to be able to form personal relationships with clients and so outsource work to LGIM.
He said in general there is a “huge burden on advisers” and so outsourcing certain tasks gives them more time to do other jobs. This has prompted advisers to look to outsourcing for certain tasks.
Teare agreed with Chua and said adviser’s workload is “mammoth”.
Earlier in September, Legal & General Retail Protection enhanced its claim process with the launch of an online claim submission capability.
Customers with eligible products now have the option to submit a claim and any supporting information digitally.
Once submitted through the protection self-serve portal, My Account, customers can track the claim with real-time status updates.
Legal & General highlighted the key benefits of the new online claim submission capability for customers and advisers.
They include 24/7 access to suit needs at a difficult time, reduction to average claim timelines, safely upload documents in support of the claim(s), track the claim status and progression as well as having access to supporting organisations and other means of contact, if required.
The insurer added that the new capability is another tool for advisers to provide support and guidance during their client’s critical moments fostering better client relationships and outcomes.
