View more on these topics

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.

Recommended

Briggs-Andy-2012-Resolution-700x450.jpg
5

Aviva’s Briggs to pocket £1m bonus for 2017

Aviva Insurance chief executive Andy Briggs will take home an extra £1m in bonuses on top of a basic salary of £726,000 for 2017. The bonus is one part of Briggs’s £2.5m remuneration package, which also includes  benefits and pensions contributions. Commenting on Briggs’s work in its remuneration committee report, published today, Aviva says there was […]

1

Aviva scraps plans to cancel preference shares

Aviva has u-turned on plans to scrap preference shares to investors. In a statement this morning, the insurance giant said that since it mooted the plans in its annual results earlier this month, it had discussed the issue with investors who had provided “strong feedback and criticism.” Based on the responses, Aviva says it has […]

Business-Corporate-Board-Room-Meeting-Hire-Hiring-700x450.jpg

Aviva boss joins BlackRock board

Aviva chief executive Mark Wilson has joined BlackRock’s board, alongside two other new independent directors. BlackRock chief executive Laurence Fink says Wilson’s experience in UK and European financial services will be a “tremendous benefit to BlackRock’s management, clients and shareholders”. General Atlantic chief executive Bill Ford and Microsoft vice president Peggy Johnson also join the […]

9

Keith Richards: The FSCS alternative staring us in the face

Unintended consequences of the pension reforms could further affect access to advice, ultimately derailing consumer freedom and choice. There is already evidence professional indemnity insurers are beginning to withdraw cover or harden terms for advisers associated with defined benefit transfers. But this is not a failure of PII. It is a more fundamental system failure, […]

protect

Preparing for the journey ahead

Simon Halifax – Senior Marketing Consultant  Life’s unpredictable as no one really knows what the future will hold. The reality is that there’s likely to be a few surprises or bumps in the road along the way on our journey of life These ‘bumps’ aren’t usually positive, so we try not to think about them and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

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.

Leave a comment