A Bristol IFA has accused Prudential of turning clients against IFAs and channelling them into its own “advice centre”.
IFA Dave Harris says he has been left without commission but carrying liability for advice he gave to a client on getting an enhanced/ill-health annuity for his vesting Pru retirement annuity plan.
Harris says he advised his client that the plan was to vest and that enhanced annuities were available but the vesting figures were sent directly to the client without Harris getting a copy.
He claims his client was then “taken under the wing” of the Pru advice centre in Belfast after contacting them for a quote on the annuities.
He says the centre then dealt with the client directly, including sending him a letter of appointment. The client did not return this letter but later faxed Pru saying he did not consider Harris as his adviser.
Harris says he carried out a fact-find on July 30 to check open market option alternatives which showed the Pru enhanced annuity quote as the best available and advised his client. He has now found that he will not get commission and has been advised by his compliance team that he is still liable for the advice he gave if anything goes wrong.
Harris says: “I appreciate that a client is free to choose if he wants to deal direct with a company but I feel my client has been deliberately steered in the direction of a Pru adviser rather than just provided with quotations.”
Pru intermediary business press officer Darragh Leeson says: “We would normally send a vesting pack to the customer and send a copy to the adviser with the pack clearly stating that if the customer requires any further advice to contact their IFA. We are investigating this matter and will contact the IFA directly to resolve it.”