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Skandia U-turns on client agreements for top-ups

Skandia Building 480

Skandia has reversed its policy that forced advisers to obtain new signed client agreements for top-ups where the adviser charge was taken as a percentage of the investment.

In January, Money Marketing revealed Skandia was forcing advisers to get a new signed client agreement when clients topped-up an investment if they wanted to take the adviser charge from the product.

Skandia said if a top-up was made and the adviser charge rose as a result, a new signed agreement was required. This was to be the case for charging methods based on a percentage of assets but not if the charge was based on a flat retainer fee.

Following adviser reaction to the policy, Skandia is now updating its adviser charging applications and adviser charging forms to cover future top-ups.

The details of the top-up policy will now be set out in the initial client agreement, meaning advisers no longer need to obtain new client agreements for top-ups.

UK managing director Peter Mann says: “Financial advisers and their clients are at the heart of our business and it is important that our procedures match the way advisers do business. We have an open dialogue with advisers and have responded quickly and positively to this situation.”


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There are 7 comments at the moment, we would love to hear your opinion too.

  1. Jolly Green Giant 4th February 2013 at 2:43 pm

    To late mate, already moved my money out to an organisation that values IFA’s. I’ve had enough of the Government u turns, so if life companies think they can get round us by changing after the event like the politicians try to, think again. Why didn’t they have dialogue with advisers first!!

  2. “Well Done” – Old Mutual.

    How to ruin a brand without trying!

  3. Wayne J Stronach 4th February 2013 at 2:56 pm

    I’ve had enough of losing money by using Skandia. Cannot complete any new business as there is a fault in their system, which according to them was to be fixed last weekend. The local rep says to complete paper applications whilst the H O staff agree that we would be best to go somewhere else!

  4. Just goes to show that the providers are just as much in a state of confusion as the advising sector.

    “Unintended consequences!”

    Don’t make me laugh it hurts.

  5. Peter Mann,

    How about I give you a quid for this business too. You seem to be taking it the right way (as usual).

  6. So let’s think about this logically. If we are levying a charge based on the new world (AC) then how can we rely on an existing client agreement which discussed commission as a way to pay? Surely any business written post 2.1.13 should be backed up by an up to date client agreement?

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