Insurer Forester Life will stop paying advisers trail commission relating to the Children’s Mutual book of business from the end of this month.
The Children’s Mutual business, formerly part of the Tunbridge Wells Equitable Friendly Society, moved to Forester Life in May. As part of the integration, Forester Life has written to advisers saying it will not pay out further commission on Children’s Mutual policies.
In the letter, seen by Money Marketing, the insurer says it will instead pay out a non-negotiable lump sum of two years’ commission based on policies remaining in force until
either maturity or 30 April 2016, whichever is the earlier.
The company declined to comment on the number of affected advisers or on how much it has set aside to settle future trail payments.
Trail will stop for life, pensions and Holloway sickness business, the Child Trust Fund and the Growing Up Bond.
Forester Life says it has taken this step to benefit policyholders.