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Electronic shock on commission cash

So providers have not been stumping up the commission promised in electronically processed statements, with less than promised being paid into the accounts of many IFAs.

The issue is highlighted this week by Nigel Hopwood, one of smartest cookies on the technology block. Hopwood now works for Bankhall but served years on the other side of the fence with one of the biggest life and pension offices.

He says simply that some providers are just not delivering what they say will into IFA bank accounts.

This is just not on. In political circles, commission may be a dirty word but for most advisers it is the bread and butter of their businesses.

As always, Money Marketing suggests that any IFA business should look at least to increase the amount of business done through fees to diversify the income streams and make it less reliant not just on the whims of politicians but also in this case the incompetence of providers.

Having consulted their clients, many of these businesses do not believe that a move to fees is a realistic alternative.

The failure to pay IFAs what they are owed is just one of a series of admin failings which Money Marketing is highlighting in its Fair Deal for IFAs campaign. In this instance, insurers need to raise their game.

Things are tough in the current climate. There have been all manner of cuts imposed on insurers and massive regulatory and political pressure as well as disappearing product lines but none of this is an adequate excuse.

To promise to deliver money and then not to do so or to be making systematic mistakes in the amount paid into advisers&#39 accounts is a disgrace and should be put right as a matter of urgency.


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