Legal & General is returning its protection commission structure to the commission on policy authorisation model in response to feedback from its advisers and partners.

From 30 May, advisers will be paid commission with immediate effect of the policy start date of a customer’s protection policy rather than upon the successful collection of a first direct debit payment.

The decision to reverse the commission on first premium system has been taken to improve the cashflow positions of adviser firms in the face of difficult economic conditions over the past 18 months.

Commission on first premium will still be an option for firms that wish to remain on this payment method.

Julie Godley, director of intermediary, Legal & General Retail, said: “After implementing the changes to our commission structure in 2021, moving from commission on policy authorisation to commission on first premium, 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.

“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.”