Annuity Line has removed a claim on its website that its non-advised annuity broking service is free of charge.
In the ‘frequently asked questions’ section of a guide produced by the firm for people considering buying an annuity, Annuity Line said: “If you decide to proceed with any of the quotations that we present you, Annuity Line will be paid a commission amount from the provider you choose for your annuity.
“This will be at no cost to you.”
Annuity Line head of business development Billy Burrows says the firm has removed the “no cost” reference after it was criticised in an article in The Daily Telegraph.
He says: “The point we were trying to make is that this money doesn’t come directly out of the client’s pocket.
“We have taken out the reference to it being ‘no cost’ but it was absolutely not our intention to mislead people in any way.
“Arranging an annuity is a serious business and it is important brokers make absolutely clear the service they are offering and what it costs to the customer.”
Rowley Turton director Scott Gallacher says: “The commissions that a lot of non-advised firms charge are often more than they would pay for advice from an IFA, so to claim it is ‘no cost’ is clearly misleading.”