Trail commission reclaim service Massow’s may take legal action against Barclays Wealth over claims it should have provided ongoing advice to an investor in exchange for almost £10,000 in trail commission.
Massow’s, which was launched by former IFA Ivan Massow in September, says it is prepared to fund the case on behalf of Leicestershire investor Richard Muston if it is proved that there was an ongoing servicing agreement in place.
In 2004, Muston invested £200,000 in an Aviva fund through a Birmingham IFA which was later taken over by Barclays Wealth. About £9,800 was deducted from the fund and paid to Barclays Wealth in trail commission.
Massow says: “It appears as if Barclays Wealth has not provided any form of support to the client. It is happy to take a servicing commission but has not serviced. Investors may have a case where someone is being paid thousands of pounds and doing nothing for it and there is an ongoing servicing agreement in place. This investor simply did not know commission was being paid, especially at the levels it was being paid at.”
Barclays Wealth says it got an upfront fee for advice and trail commission of 0.5 per cent a year from Aviva. It says Muston was aware of this arrangement. An FSA spokeswoman says there is no regulatory requirement for a firm to provide ongoing advice if it is getting trail commission until the RDR deadline on January 1, 2013.