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NU claws back its 1998 commission error from IFA firm&#39s new owner

Norwich Union is unilaterally clawing back commission from the new owner of an IFA business that it had mistakenly paid nearly four years ago to the previous owner.

On January 16, CFS Independent managing director Andrew Harwood received a letter from NU, saying, following an internal audit, it would claw back commission of £1,214.18 that it had mistakenly paid out twice to his firm in April 1998.

But Harwood responded by saying he has no idea who the client is and that the transaction took place before he bought the firm in 1998.

Despite Harwood&#39s protestations, NU is proceeding with its claim and is deducting the cash from his account. Harwood bought back the business in September 1998 for its net asset value after selling it to an accountancy firm in 1994.

A spokesman for NU says: “We accept that it was our error but we are entitled to reclaim the money and we will be doing so. However, we are prepared to recompense him for his time in sorting out this matter. When you buy a business you buy its liabilities.”

Harwood says: “I am being forced to pay for Norwich Union&#39s own mistake, which is ridiculous. They are deducting commission so I have no choice in the matter. It is quite a lot of money for a small business.”


Nationwide axes dual pricing after watchdog&#39s ruling

Nationwide Building Society is refunding a total of £90m to 400,000 mortgage customers affected by the Financial Ombudsman&#39s ruling that its dual-pricing policy was unfair.In January, the ombudsman dismissed Nationwide&#39s appeal and upheld its ruling in the case of a borrower wanting his discount mortgage to be linked to Nationwide&#39s lower base mortgage rate of […]

UBS axes Phillips & Drew brand

UBS ditched the 100-year old Phillips & Drew brand from its UK institutional fund management arm this week, in a move to unite its subsidiaries under one global brand. P&D will now be renamed UBS Global Asset Management, with its new retail arm, set for launch in June, to run under the same name.

Mad decision

Under the new depolarisation proposals by the FSA, how can it be that those advisers who wish to remain independent will not be free to offer their clients the choice between fees or commission while those who are tied will have the “independence” to charge either?Has the whole world gone mad or is it just […]

Chelsea launches new fixed and discounted loans

Chelsea Building Society has today launched new fixed and discounted rate mortgages which has an introductory rate of 4.69 per cent fixed until June 1, 2004.Other features of the product include an arrangement fee of £295 and an early repayment charge of 3 per cent against all capital repaid before the fixed period expires. The […]

Nobody expects the Spanish Inquisition

Paul Fidell, Head of Business Development (Investments), writes about one of the primary challenges for those involved in estate planning. He looks at dealing with investment uncertainty in these low growth, low inflation but still volatile investment conditions. Protection of capital, to leave something for beneficiaries, is a fundamental objective of many people’s plans for […]


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