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Aviva Investors confirms end of trail commission

Aviva-signage-building-2013-700.jpgRenewal and trail commission is being traded in for a single fee for advisers using Aviva-branded funds from 30 June.

Norwood Financial Services partner David Frost contacted Money Marketing saying advisers were not duly warned of the changes by Aviva Investors before being contacted on 7 February.

Frost says: “I do not recall anything that allows [Aviva] to reduce our remuneration without us giving our consent. This seems like a breach of our contract in the making.”

Having built “relatively good” income from trail commission and kept regular contact with clients as advised by the FCA, Frost accused Aviva of focusing on cost-cutting rather than its advisers.

Aviva confirmed it would stop trail commission from 1 June, with the final payment to advisers being 30 June before the roll out of its new ‘fund management fee’.

An Aviva spokesman says: “We believe this decision creates consistency for all our customers regardless of when they made their investment, creating a level playing field for all investors both old and new.”

Aviva did not reply to Frost’s 2 March letter asking for clarification over the cessation of trail commission fees.



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There are 7 comments at the moment, we would love to hear your opinion too.

  1. Aviva is only the latest in a line of companies to roger advisers by breaching contract.

    Standard Life did this two years back and unlike Aviva did not rebate the full saving to clients. They kept around a third of the saving for themselves and had the temerity to advise me that overall they were losing out financially. Presumably because they also reduced fees for orphan clients.

    Three years ago I successfully sued a friendly society which tried this on and I received compensation of £1,721 plus costs.

    As I’m busy maybe somebody else would like to front them in court and see how they wriggle.

  2. Trevor Harrington 27th March 2018 at 5:22 pm

    AVIVA have just bought Friends Life business, almost certainly for an unsustainable figure.

    Their administration has dissolved into farce. It takes several weeks to draw clients money out for them, often from investments which have been in existence for decades.

    I have regular examples of them saying that they have requested items by post, but the post does not come until two or three weeks after the date they insist that they posted it.

    Now then …..
    Someone tell me they are stopping ongoing trail commission to Advisers … and they will NOT be refunding it to the client’s policy ….

    SURELY NOT !!!

    AVIVA would not do that to ADVISERS who have supported them for decades and clients who have retained their investments with them for years (despite very questionable investment performance)…. would they ?

    Would somebody from the FCA mind getting off their fat arses, and going down to AVIVA … and at least ensuring that this highway robbery of Adviser fees (ongoing commissions) is at least GIVEN BACK TO THE CLIENT !!!

    Thank you ….

  3. Aviva obviously have a very big shiny new shovel and are determined to keep using it to dig a bigger and bigger hole! This is on top of the ongoing disaster that is the replatform exercise and the debacle over the proposed cancelling of Preference Shares.
    What’s the next PR gaffe?

  4. That’s another company not do do any future business with.
    This industry seems to have become full of crooks over the last decade or so. And most of them are company directors.

  5. Glad I have not done business with Aviva in 15 years. What business that used to be there has been moved long long ago.

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