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Guide aims to teach investors rebate game

Investors do not realise that they can have a say over how commission is allocated, according to a free guide from Investor Connections.

Managing director Matthew Morris says investors begrudge paying commission of 7.5 per cent on investment bonds but few realise they reach an agreement with an adviser.

The guide, The Generosity of Insurance Companies, explains how to differentiate commission from the initial charge on an investment bond and sets out how insurance companies calculate commission.

Under current regulations, the adviser has to consult the investor on how commission is treated and must get their authority to proceed with an arrangement. Morris says: “It is a highly competitive market for insurance companies and they are keen to offer incentives for consumers to invest so there are clearly benefits to be gai- ned by the investor who understands how to play the comm-ission game.

“We find that potential investors often do a simple calculation and think they are going to have to pay out 7,500 worth of commission if they invest 100,000 through an adviser. Not surprisingly, they see that as a lot of money for not a great deal of work and do not realise that they can negotiate how the money is treated and effectively retain it for themselves.”


Matrix unloaded

The controversial move of the 30m Quantock UK growth fund from Matrix to Marlborough demonstrates the power wielded by managers in disputes over the control of their funds.

Probes are useless unless FSA stops making a mystery of KFIs, says BSA

The BSA accepts that firms which have been newly regulated since M-Day are still going through a bedding-down period but says there is confusion in the market over FSA criteria for KFIs. The comments follow an FSA mystery-shopping exercise in August which showed that 55 per cent of lenders and advisory firms did not issue […]

Schroders launches first fund in China venture

A medium risk equity fund will be the first product launched by Bank of Communications Schroder Fund Management Company.The new fund will be available to investors on August 26, holding 40 per cent in core defensive stocks, 30 per cent in cyclical growth stocks and 30 per cent in cash. It will also be allowed […]

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]


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