Axa says the move will cut costs and save paper but Dermot Brannigan IFA principal Dermot Brannigan says IFAs should have been consulted and given more warning as the move makes it harder for them to manage cashflow.
Brannigan first learned of the move, which will come into force this month, via a notice on his last commission statement.
In the statement, Axa said: “In order to reduce expenses as well as our impact on the environment, we have reviewed the amount of paper commission statements produced each week and we have noticed that a large amount of statements are produced for relatively small amounts of commission.”
But Brannigan says: “If they had put the minimum up to £100, OK, but £50 to £300 seems unbelievable. What is to stop it increasing to £500 next month?”
Where commission does not total £300 in any given month, it will be rolled over to following month. Axa says the move is in line with competitors.