Former IFA Ivan Massow has launched a new proposition which pledges to return the majority of trail commission clients are paying if they switch from their current adviser.
Massow’s says it will return 80 per cent of the trail commission and keep 20 per cent itself and is targeting clients who are not receiving any ongoing advice.
According to an article in the Independent, the firm will not be offering advice itself but has set up referral arrangements for individuals requiring advice. The firm’s website provides a function for individuals to be put in touch with an IFA.
Speaking to the Independent, Massow says: “The first priority of our advertising campaign is going to be education. Most people simply don’t know they’re paying these fees – not a single person I’ve asked knew of their existence.”
On its website, the firm says: “You probably haven’t heard of ’trail commissions’, but up to 1.5 per cent of the value of your investments each year could be paid out to your Independent Financial Adviser as commission. We will find this commission and pay 80 per cent of the full amount back to you. This means that on a typical pension we would send you more than £60,000 over the term of the policy.”
“Your policies remain unchanged, and you don’t need to contact your existing IFA. We only take our 20 per cent fees from commission we successfully pass on to you. If we’re unable to track down the commission, it will not cost you a penny.”
The firm calculates its £60,000 “typical pension” figure based on a pension fund of £100,000 with trail commission payable over 30 years