Legal and General is returning its protection commission structure to commission on policy authorisation model following feedback from advisers and partners.
The return will come into force from 30 May and will mean that advisers will be paid commission with immediate effect of the start date of a customer’s protection policy rather than successful collection of a first direct debit payment.
The decision to reverse the commission on first premium system has been made to improve cashflow positions of adviser firms in face of “difficult economic conditions” over the past 18 months.
Commission on first premium will be an option for firms that wish to remain on this payment method.
Julie Godley, director of intermediary at Legal and General Retail, said that after implementing the changes to its commission structure in 2021, it had “we continually and actively consulted with our partners and firms”.
“While some have benefitted from the changes, others have told us that the decision created challenges, especially in the current economic environment,” she noted.
Godley continued: “It’s important to pursue changes that improve industry best practice, but the timing needs to be right. Therefore, we feel the correct response is to reinstate commission on policy authorisation, while still giving those that wish to stay on commission on first premium the option to do so.
“We are continually listening to our intermediary partners and that has to be coupled with a willingness to take action to ensure we provide the best service, processes and solutions for our advisers and partners.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
