Important information about our investment offering

We’ve been reviewing some of the ongoing responsibilities associated with the scheme’s investment framework.

We’ve recently written to you following a review we’ve carried out on the investment framework that’s set up on the scheme and identified some actions that may be required.

On this page you’ll find some Q&As which will help with any immediate questions you have, along with copies of letters and Q&As that we’re sending employers.

Adviser materials

One of the key principles of the DWP guidelines on default investment options is that roles and responsibilities for ongoing suitability and design of the investment default must be clearly defined.  Our investment range framework helps to establish where those responsibilities lie between the scheme and Royal London.  We’ve split our default investment options into four ranges – Default, Selected, Designed and Supported.  

Our range of default options are shown below and have been categorised depending on who is taking responsibility for suitability and design.

RangeResponsibility for default suitabilityResponsibility for default designDefault options
Royal London Default Royal London Royal London Balanced Lifestyle Strategy (Drawdown)
Royal London Selected Royal London Royal London Balanced Tracker Lifestyle Strategy (Drawdown)
Royal London Designed Employer / Adviser Royal London All of our Lifestyle options which can include bespoke branding, bespoke lifestyle route and choice of at retirement targets1
Royal London Supported Employer / Adviser Employer / Adviser All of the options available under Royal London Designed, plus build your own custom lifestyle including your asset allocation, fund selection and lifestyle switch points1

1 Default investment strategies may only use our internal funds and BlackRock passive funds to ensure that fund charges will not cause the scheme to breach the 0.75% pa charge cap.

As part of this exercise we have identified some schemes where the default investment option is not appropriate for the investment range set up on the scheme.  We will update the scheme’s investment range to appropriately match the new default investment option.

Customers and schemes in our older style contracts cannot currently invest in our Governed Range.  The Governed Range has been designed to cater for a range of different risk levels and target end points and comes with increased governance and regular review.

To make the Governed Range available to our legacy schemes and members we are setting up a set of new strategies which will be available to them and will be managed in a very similar way to the existing Governed Range.

Employer materials

One of the key principles of the DWP guidelines on default investment options is that roles and responsibilities for ongoing suitability and design must be clearly defined.  Our investment range framework helps to establish where those responsibilities lie between the scheme and Royal London.  We’ve split our default investment options into four ranges – Default, Selected, Designed and Supported. 

Our range of default options are shown below and have been categorised depending on who is taking responsibility for suitability and design.

RangeResponsibility for default suitabilityResponsibility for default designDefault options
Royal London Default Royal London Royal London Balanced Lifestyle Strategy (Drawdown)
Royal London Selected Royal London Royal London Balanced Tracker Lifestyle Strategy (Drawdown)
Royal London Designed Employer / Adviser Royal London All of our Lifestyle options which can include bespoke branding, bespoke lifestyle route and choice of at retirement targets1
Royal London Supported Employer / Adviser Employer / Adviser All of the options available under Royal London Designed, plus build your own custom lifestyle including your asset allocation, fund selection and lifestyle switch points1

1 Default investment strategies may only use our internal funds and BlackRock passive funds to ensure that fund charges will not cause the scheme to breach the 0.75% pa charge cap.

As part of this exercise we have identified some schemes where the current default investment option is not appropriate for the investment range set up on the scheme.  We will update the scheme’s investment range to appropriately match the new default investment option.

Customers and schemes in our older style contracts cannot currently invest in our Governed Range. The Governed Range has been designed to cater for a range of different risk levels and target end points and comes with increased governance and regular review.

To make the Governed Range available to our legacy schemes and members we are setting up a set of new strategies which will be available to them and will be managed in a very similar way to the existing Governed Range.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.