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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.”

The Lang Cat principal Mark Polson says: “Skandia deserves praise for this quick change but it would have been better if it had listened to advisers when introducing this process so this did not happen in the first place.”


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