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Advisers face switch problems

The closure of Axa’s deferred Sipp means advisers will have to generate a new application for clients who want to take their tax-free lump sum.

Clients can transfer into The One from Winterthur but this would be classified as a new transaction so the adviser would have to search the whole of market before making the transfer. This means that Axa would claw back the initial commission.

Concept Financial Planning managing director Paul Richardson says: “This creates extra paperwork with discharge papers and new application forms. The Winterthur product has a more restricted fund range and the process of transferring could take more than four weeks, meaning clients will be disadvantaged.”

An Axa spokesman says: “At the point the decision was made to close the plan, much effort was expended to ensure the move to The One from Winterthur did not unnecessarily impact either the client or adviser.”

Axa says set-up charges for the new product will be waived, as will the first annual drawdown charge, so “significant concessions” have been made.

It adds that advisers can earn new initial commission on the Winterthur product and says transfers can complete in 14 days, depending on complexity of assets held.


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Why did you use AXA in the first case COMMISSION PROBABLY !

  2. how safe are the pensions with Hartford uk. have they restricted the number of funds re investment

  3. Most Insurance Companies have issues with service, rather than moan about it and waste your time in the pinks why not just get on and get it sorted.

    Is this really an issue or just an excuse to get your name in the press.

  4. Don’t be affraid to put your name on your reply?..
    Something to hide?
    Commission was not a factor in the selection of AXA – a wide range of funds available with the options of using features associated with a full SIPP at a very competitive price for the client.

    Whilst the reporter can not get all the information in the article – is it really fair that we should accept this poor service from any insurance company – we were instructed with wrong information by AXA service team who did not even know that a discharge from AXA and new application into Winterthur would have to happen.

    This is a real issue – and I believe advisers who have recommended AXA deffered SIPP need to know about – not an excuse to get my name in the paper. Our client had to wait over 3 weeks to secure some of his PCLS due to a fundmental change in the Key Features of the plan.

    Your concern over how I spend my time – has been noted and with all due respect … we are just trying to make other professional planners understand the process that they we have to go through now that a insurance company has just decided to change the contract – without consultation or having a process in place ….


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