L&G leave Premier panel after 'compliance free' claim
Intermediary network Premier Protection has changed its advertising wording following the withdrawal of one of its top panel members, Legal & General (L&G).
L&G decided to leave the panel after Premier Protection described itself as the first 'compliance free' network. The provider said it would not support any move away from regulation and that its business partners should also work to the same high levels.
Duncan Crocker, L&G's business partnership director, said: 'Legal & General and its business partners work to high business standards for the sale of all retail financial products, including life protection products. By doing so, the company and its business partners re-enforce their brands and reputations. We and our partners do not support any divergence away from the standards set for the conduct of business, including adherence to the spirit and letter of the ABI Code for the sale of protection products and the other rules and regulations for the conduct of long-term savings and investment business, mortgages and general insurance. Those firms who find this approach too onerous, will have to look to do business elsewhere.'
Director of Premier Protection, Mike Cook, said he was disappointed by L&G's decision and had changed the wording of the advertising forthwith. 'First, the expression 'compliance free' was intended to refer to PIA compliance, with its multi-page fact-finding and various compulsory letters. These protect consumers who are conducting investment-related business but are unnecessary for the protection products in which we specialise. We accept that the expression could be misleading and have changed the wording of subsequent advertisements.
'Premier Protection like Legal & General and all the providers on the panel, expects its business partners to work to high standards. That is why the ABI Life Insurance (non-investment business) Selling Code of Practice forms an integral part of the agreement between Premier and its members.
'Premier Protection was established to perform a service to the public and the industry by making protection products easier to sell. The fact that over 80 reputable advisers already use us is evidence enough that there is a need for our services,' said Cook.
Other providers on the panel include Cornhill, Scottish Provident, Zurich, Unum and Skandia. Lynda Cox, life marketing manager at Skandia, said that despite L&G's move, they would be staying on the network's panel. 'At this time, we have no reason not to continue negotiations with the network,' she said.
