View more on these topics

Boycott firms over servicing

As an IFA who chooses to offer both ongoing service and remuneration options to my clients, (either by fees or by level/fund-based commission), the debate about servicing commission came as a bit of a surprise until I remembered that we still have companies in our midst which always treat servicing commission as an ongoing reward to the person who originally sold (or mis-sold) the product. Stand up, please, Skandia and Isis.

Both companies insist on continuing to pay what should be “servicing” commission to advisers who in some way have been found wanting by their clients or, worse still, if the previous adviser has for some reason gone out of business, pocket the servicing comm-ission for themselves even though a new adviser has been appointed. It is, of course, completely indefensible to steal money from clients in this way.

I have never placed an investment with either company (and neither shall I) simply because if a client finds me wanting in any way, then he or she will be positively encouraged to take their investments (and the servicing commission) elsewhere.

I wonder if the general manager of either firm is pre-pared to defend their stance through these pages? Are any other advisers out there going to join me in a general boycott of these companies untill they see the error of their ways?

Roger Yates

Caliber Financial Associates,

Leighton Buzzard, Beds

Recommended

Gartmore – Gartmore Portfolio: Active Strategy Fund

Type: Oeic multi-manager fund of funds Aim: Growth by investing in UK and global equity funds Minimum investment: Lump sum £1,000, monthly £50 Investmnet split: 100% in UK and global equity funds Isa link: Yes Pep transfers: Yes Charges: Initial 5%, annual 1.5% Special offer: Initial charge reduced to 3% Offer period: Until December 31, […]

Did pride come before David Aaron&#39s fall?

Bruce Love&#39s obituary to the once glittering career of bon viveur David Aaron should be a salutary lesson to other firms with big, mass-mailable client banks. While the PIA issued no guidelines specific to the marketing of Scarps, the issue of suitable risk warnings in promotional literature has been with us for many years. How […]

AITC in bid to put investment trusts firmly on exam syllabus

The Association of Investment Trust Companies is starting a campaign to raise the profile of investment trusts in industry exams. It is in negotiations with exam-setters such as the Chartered Insurance Institute and the Securities Institute. The AITC is concerned that many advisers are qualified in several sectors but are advising on investment trusts with […]

HBOS decides against Abbey bid

HBOS has announced it has decided not to proceed with an offer for Abbey. Further to the announcement on August 2 in respect of a potential combination with Abbey, HBOS analysis has concluded the shareholder value inherent in its existing prospects is superior to that achievable through a combination.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com