Friends Life will cease to pay trail commission to advisers on 800 investment bonds following a change in administrator and has confirmed that the money will not be rebated back to policyholders.
The provider says it will no longer pay trail on the Premium Select Bond and Melbourne Life Company Bond, both of which are closed to new business, from October.
A Friends Life spokesman says this is because it would not be “commercially viable” to build a new commission payment function with HCL, the newly appointed administrator.
He says: “The money will be re-invested into the business and will contribute towards the on-going programme that ensures good customer experience across all areas of the business.”
“The administration changes are complex and the successful migration of administration services, to provide continued high levels of service to customers, is our priority.
“We are focused on maintaining and continuing to grow a sustainable business and building a new commission payment function with HCL is not commercially viable as these bonds are closed to new business and only around 800 remain in force.”