Legal & General is the best placed firm within the life market to benefit from the RDR and an increasing focus on asset management, according to analyst Nomura.
It says L&G already has the highest exposure to asset management in the European insurance sector, contributing to 21% of its earnings. It further predicts this will grow to 37% by 2013 as a result of changes brought about by RDR. In a note, Nomura says: "The RDR will require IFAs to charge fees instead of receiving commission by 2013, leading to improved quality of investment advice, in our view. "This is already causing IFAs to sell more asset management products and fewer non-pension insurance savings products (eg unit-linked life), because the former are better suited to many c...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
