Ivan Massow says he “regrets terribly” telling clients he would keep 100 per cent of trail following the demise of his trail commission return business Paymemy.com/mission.
On the BBC’s Money Box programme last week, presenter Paul Lewis questioned an initial email Massow sent to clients which said the firm would keep 100 per cent of future trail if clients do not move to another adviser.
Massow said: “I regret that wording terribly now. I wanted to enforce the urgency, and the reality that the business was going to close. I will not keep 100 per cent, I will not keep any of it, it will just get lost in the mire of a closing business.”
He said the letter had now been superceded after Club Finance, which also offers commission rebates, took over the client bank.
Clubfinance will return 75 per cent of a client’s trail and retain 25 per cent. Massow’s service charged 20 per cent.
Massow added: “We have been careful not to allow this to affect clients. We have rebated all the fees that we took from them, and I think we have behaved honourably.”
Lewis said many advisers were unlikely to agree, and pointed to online comments on Money Marketing showing “the depth of hostility and anger towards Ivan Massow and his business.”
Essential IFA managing director Peter Herd also appeared on the programme, saying clients needed to focus not just on what they are being charged, but the level of service they are getting for those charges.
Another adviser, Simon Kershaw, also contacted Money Box, saying he had been an IFA for 18 years, and had “never knowingly lost a good client, even to ’commission-harvesting’ ventures such as Mr Massow’s.”