Legal & General (L&G) is anticipating a drop-off in sales through financial advisers over the coming months and into early 2013 as firms concentrate on developing their business models for Retail Distribution Review (RDR) implementation.
In its Q1 interim management statement today, the provider suggested it was in position to benefit from RDR through its partnerships with building societies, claiming it already has relationships with three of the UK's top four.
However, it also warned of a short-term hit on sales through advisers as a result of the regulatory upheaval.
"We anticipate preparation for RDR will reduce adviser activity for the rest of the year and the early part of 2013 due to the need for advisers to transform their client business models and processes," it said.
In Q1, 38% of its new business came through retail IFAs, down from 42% during the same period in 2011.
Overall, new business within its savings arm was down 6% on the same period in 2011 to £300m, with "lower consumer confidence and disposable income" blamed.
Individual protection volumes were 9% up at £36m (Q1 2011: £33m). Group protection was down at £12m (Q1 2011: £15m).
