Legal & General has announced its membership of a new independent professional body, the Consumer Duty Alliance (CDA), aimed at promoting good practice and delivering better client outcomes.
23 Mar 2023
The CDA, which launched on 9th March 2023, has been established to inspire greater confidence and trust in financial advice and planning, ahead of the introduction of the Consumer Duty in July 2023. By sharing examples and insights on their approach, CDA members will promote better standards in benchmarking, regulatory interpretation and practice.
The launch of the CDA follows a Financial Vulnerability Taskforce (FVT) member survey last year. The survey, which looked at the experiences of FVT member organisations in relation to Consumer Duty, found that more than one in six (60%) respondents would like clearer guidance ahead of the implementation deadline on 31st July 2023.
The CDA has excluded commercial activities from its remit, with initial funding support provided by Legal & General and Howdens Brokers as Foundation Affiliates.
As with other CDA members, Legal & General has adopted an independent Code of Professional Standards, as well as the consumer facing Financial Vulnerability Charter.
Working in partnership with the Financial Vulnerability Taskforce and CDA, Legal & General has supported the launch of the ‘Consumer Duty and Retirement Income target market guide’1, which focusses on what actions advice firms might consider taking with the new Consumer Duty, in light of a changing retirement income landscape and evolving consumer needs.
Cecilia Furner, Distribution Director, Retail Annuities, Legal & General: “At Legal & General, we welcome the new Consumer Duty as it reinforces the importance of consumer protection and drives enhanced outcomes. We have always understood the value of transparency, clear standards and providing products and services that both intermediaries and customers can easily understand and benefit from, and we’re committed to supporting people in vulnerable circumstances.
Keith Richards, CEO, Consumer Duty Alliance: "The need for an alliance across financial services has the potential to unite the profession in both a pre-and-post consumer duty landscape, which is evident from the significant cross-sector response and encouragement following the launch of the CDA. We would like to thank Legal & General for their support as a Foundation Affiliate, along with their expertise and input to the creation of the Retirement Income guide.”
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Retail helps create brighter financial futures for all our customers. The division covers the savings, protection and retirement needs of our c.13 million retail policyholders and workplace members.
In 2022, we had total individual annuity sales of £954 million, and issued £632 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 4.9 million members, while our Protection businesses gave peace of mind to more than 6.3 million UK life insurance, 1.8 million group and 1.5 million US customers, taking in £3.1 billion of gross written premiums.
*at 31 Dec 2022