The company said it would aim to combine the best of both and enhance the existing services, rather than undergo a
replatforming exercise.

An advisory board of 20 to 30 firms that represent intermediaries of all varieties and sizes including users of the Cofunds and Aegon platforms was set up after the deal was first announced in August and it met for the first time in December.

At the first meeting, Aegon said that it outlined its intermediary focus, platform strategy and what users can expect to see in the coming months.

In a statement, it said: “The business explained its intention to combine the best of both the Aegon and Cofunds platforms through a technology upgrade approach. This differs from a traditional replatforming exercise, which typically means the build of a platform and migration of customers to it.

“Instead the technology upgrade will take an established platform and add functionality and data to it. This means that benefits can be brought to advisers quickly through enhanced functionality without the need for revisiting suitability or work in the intermediaries back office.

“The board heard that a significant emphasis will be placed on enhanced digital service and a reduction in use of paper which Cofunds’ users had highlighted as being a key change they needed.

“Advisers will benefit from the additional use of straight through processing which can reduce the possibility of manual errors and frees up time for client advice. User log-ins will remain the same to avoid problems being able to access the enhanced functionality.”

Aegon promised Cofunds users will benefit from a wider product range including the use of Exchange Traded Funds, Investment Trusts, Shares and an integrated pension in the second half of 2017.

Cofunds will continue to be led by David Hobbs and be run from its HQ in Witham, Essex, with operational staff also located in Hove, East Sussex.

Adrian Grace, Aegon chief executive, said: “Today marks the start of a new era for both Aegon and Cofunds. The completion takes us a major step further in our transition from traditional life company to fully-fledged platform business.

“Our focus now is to help intermediaries grow their business, grow their profitability and manage their risk and costs effectively. What will set us apart from the competition is our commitment not to compete with advisers for distribution, and focus on our investment trading platform and providing the best service and tools.”

This is the third transaction completed with Aegon by Legal & General. These comprise the acquisition of Aegon’s £2.9 billion annuity back book, the 5 year individual annuity distribution agreement for Aegon pension customers with Legal & General, and the acquisition of Cofunds and IPS by Aegon.