IFAs have been told to charge providers and platforms if they spend time resolving errors.
In a session on adviser-charging at the Personal Finance Society’s annual conference in Coventry this week, a delegate asked the fee-based panel how they would bill for work involved in fixing an insurance company’s mistake.
Investment Quorum chief executive Lee Robertson said his firm charges insurance companies at the same rate it would a client and warned firms that are adjusting to adviser-charging structures not to be swayed by resistance from providers.
He said: “When mistakes are made by an insurance company we always bill that company. Do not take any of their nonsense about how little they want to pay you. Bill them as you would bill the client.”
Nicholls Stevens Financial Services partner Carole Nicholls, who was also on the panel, said: “The same would be true if it was a platform provider at fault, a Sipp provider or any other provider for that matter. If the company has made a mistake, I bill them for it.”
John Lamb Partnership managing director Paula Steele said: “If there has been a huge error and you have had to spend a lot of time sorting it out, send them a bill.”