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Age UK to return NHFA commission to clients

Age UK has confirmed it is to return any commission relating to Nursing Home Fees Agency misselling back to clients it recommended to the HSBC-owned firm.

On Monday, the FSA issued the largest ever retail fine of £10.5m against HSBC because of inappropriate investment advice provided by NHFA to 2,485 elderly customers between 2005 and 2010.

Age UK, formerly known as Help the Aged, recommended clients to NHFA during that time. Help the Aged had a relationship with NHFA until 2009 but says it did not advise potential customers or have any input in investment decisions.

The relationship was ended in 2009 when Age Concern and Help the Aged merged to form Age UK.

Age UK Enterprises managing director Gordon Morris says: “HSBC, as parent of NHFA, bears full liability for their losses, however we are offering to return any historic commission made by the charity Help the Aged on the product to those affected or their families.”

A helpline for those affected has been set up for those whose product is linked to Help the Aged on 0800 030 4709.

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Comments

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

  1. Who exactly will Age UK return money to? And how much will they give back? Sounds like another bit of spin

  2. Why? Do people support AgeUK so they can:
    – either give money to reduce HSBC’s costs or
    – pay money to families that HSBC has already compensated.

    How strange.

  3. Nigel Barker-Smith 8th December 2011 at 10:46 am

    There you go then, Age UK recommended NHFA because they got a kick back.

    Seems to me another great example why it’s so right to ban commission as part of RDR.

    It clouds the judgement and questions the integrity unless you are paid directly by the person seeking the help or guidance.

  4. Stephen Wilkinson 8th December 2011 at 12:38 pm

    If Help the Aged did not give advice or or have input on investment decisions how could they be paid a commission. What they were receiving was an introducers fee. Did they disclose this to those they referred on? If not this was a conflict of interest; does this breach any FSA rules for introducers? Why were NHFA selling so many bonds, was this to do with the commission they were receiving and who were the providers of these bonds? It looks like there are few more questions to answer. Hopefully the elderly, their families, attorneys and charities will now realise that they need independent advice given by qualified, experienced, chartered and certified planners operating to a code of ethics and anything less than that should be viewed with deep suspicion

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