Legal & General (L&G) has confirmed that it does not wish to become a principal for the majority of its general insurance brokers.
The insurer became one of the first major insurers to announce that it would apply for principal status under FSA regulations.
But it has said that its appointed representatives would mainly come from its network of mortgage agents. It would wish to become the principal only for a small number of specialist personal lines brokers.
L&G intermediary solutions managing director Graham Newitt said: "We have 600-700 estate agents and mortgage brokers who are tied to us. We want to make sure these have a home as the regulations come into force.
"We would expect the majority of our full-time intermediaries to become directly authorised. But for a small number of specialist brokers, there might be case for us becoming a principal."
