REG - Legal & General Grp - L&G Full Year Results 2016 Part 1 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 3

Legal & GeneralAnnouncement

08/03/2017 07:06

- Part 3: For the preceding part double click  ID:nRSH7988Yb 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 Changes in regulation or legislation may have a detrimental effect on our strategy.Legislation and government fiscal policy influence our product design, the period of retention of products and required reserves for future liabilities. Regulation defines the overall framework for the design, marketing, taxation and distribution of our products; and the prudential capital that we hold. Significant changes in legislation or regulation may increase our cost base, reduce our future revenues and impact profitability or require us to hold more capital. The prominence of the risk increases where change is implemented without prior engagement with the sector. The nature of long-term business can also result in some changes in regulation, and the re-interpretation of regulation over time, having a retrospective effect on our in-force books of business, impacting the future cash generation.  There remains a significant regulatory change agenda, both from the EU and from within the UK. Current changes in EU driven regulation include GDPR, UCITS V, MIFID II and PRIIPS. While over the longer term, the UK exit from the EU will potentially lead to 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                a re-writing of some legislation, until the UK formally leaves and the UK Government legislates otherwise, EU derived legislation will remain in force. There is also the risk that EU exit negotiation proposals have unintended consequences for the operation 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                of the UK financial services sector. There also continues to be significant change in the tax environment including the global implementation of OECD BEPS recommendations and the prospect of significant US tax reform. With regard to UK regulation,         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                alongside the PRA ensuring the effective operation of Solvency II, the FCA continues to focus on its approach to consumer regulation, with the inherent risk that thematic reviews of historic industry practices lead to unanticipated additional costs. We are 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                supportive of regulation in the markets in which we operate where it ensures trust and confidence and can be a positive force on business. We seek to actively participate with government and regulatory bodies in the UK and Europe to assist in the          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                evaluation of change so as to develop outcomes that meet the needs of all stakeholders. Internally, we evaluate change as part of our formal risk assessment processes, with material matters being considered at the Group Risk Committee and the Group Board. 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Our internal control framework seeks to ensure ongoing compliance with relevant legislation and regulation. We cannot, however, completely eliminate the risks that controls may fail or that historic accepted practices may be reappraised by regulators,     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                resulting in sanction against the group.                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 New entrants may disrupt the landscape of the markets in which we operate.As has been seen in other business sectors, it is possible that alternative digitally enabled providers of financial service products emerge with lower cost business models or innovative service propositions and capital structures disrupting the current competitive landscape.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 There is already strong competition in all our markets, and although we have had considerable past success at building scale to offer low cost products, we recognise that markets remain attractive to new entrants. We are also cognisant of the potential for 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                entry by scale overseas competitors who may have lower return on capital requirements and be unconstrained by Solvency II. We are executing a digital strategy, using platforms that allow for growth and high scale. Alongside our direct insurance business   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                that enable customers to purchase our protection products on-line, we continue to enhance our online capabilities for auto-enrolment, investment platforms and individual retirement products ensuring focus on customer engagement and the digital experience. 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 A material failure in our business processes or IT security may result in unanticipated financial loss or reputation damage.We have constructed our framework of internal controls to minimise the risk of unanticipated financial loss or damage to our reputation. However, no system of internal control can completely eliminate the risk of error, financial loss, fraudulent actions or reputational damage. We are also inherently exposed to the risk that third parties may seek to disrupt our online business operations, steal customer data or perpetrate acts of fraud using digital media.                                                                                                                                                                                                                                                                                                                      Our plans for growth and the digitalisation of our businesses, together with the regulatory change agenda, inherently increase the profile of operational risks across our businesses. We continue to invest in our system capabilities and business processes  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                to ensure that we meet the expectations of our customers; comply with regulatory, legal and financial reporting requirements; and mitigate the risks of loss or reputational damage from operational risk events and external cyber threats. Our risk governance 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                model seeks to ensure that business management are actively engaged in maintaining an appropriate control environment, supported by risk functions led by the group chief risk officer, with independent assurance from Group Internal Audit. We recognise      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                however, that residual risk will always remain and have designed our risk governance framework to ensure that when adverse events occur we can deploy appropriate responses.                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 
 
ENQUIRIES 
 
Investors: 
 
Laura Doyle                   Head of Investor Relations                      
                                               020 3124 2088 
 
Sujee Rajah                   Investor Relations Manager                      
                                             020 3124 2047 
 
Media: 
 
Richard King                  Head of Group Corporate Communications          
                                    020 3124 2095
Doug Campbell              Tulchan Communications                             
                                          020 7353 4200 
 
Notes 
 
A copy of this announcement can be found in "Results", under the "Financial
information" section of our shareholder website at
http://www.legalandgeneralgroup.com/investors/results2017.html. 
 
A presentation to analysts and fund managers will take place at 9.30am UK time
today at One Coleman Street, London, EC2R 5AA. There will be a live webcast of
the presentation which can be accessed at
http://www.legalandgeneralgroup.com/investors/video.html A replay will be
available on this website later today. 
 
There will be a live, listen only, teleconference link to the presentation.
Details below: 
 
 PARTICIPANT DIAL-IN NUMBERS                                
                                                            
                                                            
                                                            
 LOCATION YOU ARE DIALLING IN FROM  NUMBER YOU SHOULD DIAL  
                                                            
                                                            
 UNITED KINGDOM                     020 3059 8125           
                                                            
 UNITED STATES (TOLL FREE)          1 855 287 9927          
                                                            
                                                            
 ALL OTHER LOCATIONS                +44 20 3059 8125        
                                                            
                                                            
 
 
 2017 Financial Calendar                  Date             
                                                           
                                                           
                                                           
 Ex-dividend date (final dividend)        27th April 2017  
 Record date                              28th April 2017  
 Last day for DRIP elections              19th May 2017    
 Annual general meeting                   25th May 2017    
 Payment date of 2016 final dividend      8th June 2017    
 Half-year results 2017                   9th August 2017  
                                                           
                                                           
                                                             
                                                               
 
 
DEFINITIONS 
 
Definitions are included in the Glossary on pages 89 to 92 of this release. 
 
FORWARD LOOKING STATEMENTS 
 
This announcement may contain certain forward-looking statements relating to
Legal & General, its plans and its current goals and expectations relating to
future financial condition, performance and results. By their nature,
forward-looking statements involve uncertainty because they relate to future
events and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and business
conditions, market related risks such as fluctuations in interest rates and
exchange rates, the policies and actions of regulatory and Governmental
authorities, the impact of competition, the timing impact of these events and
other uncertainties of future acquisition or combinations within relevant
industries. As a result, Legal & General's actual future condition,
performance and results may differ materially from the plans, goals and
expectations set out in these forward-looking statements and persons reading
this announcement should not place reliance on forward-looking statements.
These forward-looking statements are made only as at the date on which such
statements are made and Legal & General Group Plc does not undertake to update
forward-looking statements contained in this announcement or any other
forward-looking statement it may make. 
 
This information is provided by RNS
The company news service from the London Stock Exchange