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No trail on orphans, says Paymentshield

Paymentshield chief executive Stuart Pender has criticised advisers for leaving orphan clients behind when they retire, insisting they should not be paid trail commission.

The comments will come as a shock to the estimated 1,500 brokers who were hit by Paymentshield’s decision in October last year to stop paying trail commission to brokers who are no longer regulated by the FSA.

Pender says: “If these advisers had taken care of their clients and sold their business rather than just exiting and leaving them as orphan clients, then we would still be paying commission to the adviser that could advise on that business. Policyholders should be paying for getting advice. They should not be subsidising agents who have left the industry.”

Money Marketing has seen promotional literature, dated 2004, in which Paymentshield pledges to continue to pay trail commission “for the life of the policy”.

Its agency terms and conditions are headed by the slogan, “Protecting your clients is an essential part of your job, protecting your future is an essential part of your life – with Paymentshield, it’s never been easier”.

But the firm points out the T&Cs also state: “This agreement will terminate if your licence to conduct business is removed, suspended or impaired by any order or decree of any regulatory or judicial authority.”

see this week’s profile – Stuart Pender >>


Hartford fails to hit the mark

The recent article in Money Marketing headlined, Hartford’s hits and myths of retirement raises the issue of with-profits funds moving away from equities in market downturns but fails to consider the counter-argument when markets rally. It is evident that some companies are not as well positioned as others because of their “reading” of equity markets […]

NU rejects wrap claims and slams supermarkets

Norwich Union director of business development Simon Massey has rubbished rumours that its Lifetime wrap has stopped accepting new business and has hit out at fund supermarket platforms, saying they lack transparency.NU has brought its wrap business in-house, closing its Cambridge office with 200 staff and moving to York.Massey says the restructure has had no […]

Financial Services Forum chief joins Teamspirit

Financial Services Forum founder and chief executive Anthony Thomson has joined the board of marketing agency Teamspirit.Thomson joins the seven current board members as a non-executive director.Teamspirit managing director Jo Parker says: “As we look to grow the business, he will be able to provide us with a wealth of industry knowledge and advise us […]

Pension savings-2015

Pension tax relief: parked (for the moment)

The national news agenda has been dominated by pension issues this month. For those that missed it (and there cannot have been many given that this was the lead story in spoken and written media), the Chancellor announced a decision to make no decision on pension tax relief in his 16 March 2016 Budget speech. To […]


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