Trail commission reclaim service Massow’s has settled a complaint with the Advertising Standards Authority after an IFA questioned whether the ad’s claims could be substantiated.
Former IFA Ivan Massow (pictured) launched the Paymemy.com/mission website in September, which promises to return 80 per cent of trail commission to clients who are not receiving ongoing advice. The remaining 20 per cent is retained by Massow’s.
A national newspaper ad for the service encouraged clients to recoup trail commission paid in relation to their investments with the lines: “My mission is to get you back £1,000s in pension and investment commission. It is free money because it is your money!”
The ad goes on to say: “Did you know IFAs can take up to 1.5 per cent of the value of your pension or investments each year, every year regardless of whether or not they give you advice?
“Receive more than £60,000 on a typical pension.”
An IFA complained about the ad to the ASA, questioning whether the claims could be substantiated.
A spokesman for the ASA says: “With regards to the informally resolved case involving Massow’s, we received a complaint about its national press ad challenging whether various claims about pension and investment commission were misleading and could be substantiated.
“We approached Massow’s about the concerns that had been raised. Given the ad had a very short run and was no longer appearing and that Massows took the concerns on board and agreed to seek pre-publication advice before making similar claims in the future, we closed the case informally.”
Massow says the ASA’s concerns were based on whether the ad inferred clients could reclaim upfront commission as well as trail commission, and whether the 1.5 per cent trail figure could be substantiated.
He says: “The calculations were not incorrect and the amount we stated people can get was not incorrect. Given that we were not running the ad anymore, there seemed little point in dragging out the case further.”