PREPARING FOR THE RETAIL DISTRIBUTION REVIEW (RDR)

Legal & General has set up a Group wide programme to assess the potential impacts of the RDR and ensure that we are well positioned to continue to operate successfully after implementation of these changes.

The key challenges are to predict what the distribution landscape will look like post-RDR, the changing shape of consumer demand and the impact this has on product providers operating in the retail financial services market.

We believe there are four key requirements for firms to be successful:

Strong engagement with customers

Efficient processes underpinned with good quality technology

Scale in mass market products

A wide product range capable of supporting customer needs.

Our strategy and investment business case has been agreed by the Board and we are now moving from the strategy and planning phase into implementation. Initial focus will be on ensuring compliance with the RDR rules, preparing to facilitate the payment of adviser charges and developing an extended proposition for partners.