Renewal 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.