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Surplus to requirements

We know that we all have difficult jobs to do at the moment but most IFAs do a good job and are respected by their clients. What we do find confusing is the attitudes of some insurance companies and service issues. Some are getting much better and some give appalling service.

Here is a story of a client who was sold a policy by an ex-Scottish Widows’ consultant. The client said he was guaranteed a 20,000 surplus. The proposal was signed by the consultant but the business was given to a general insurance broker in return for reciprocal business. No advice whatsoever was given by the broker or any correspondence kept by him.

Unfortunately, I set up as a life IFA and took over this business. We have probably received some renewal commission, possibly at 3 a month. We did not receive initial commission. Scottish Widows seem to say that as the policy was sold in 1986,it is pre-FSA, so it is not their problem. If any other company has ever received any free business in the past this is an unwelcome development.

While we did sell some endowments ourselves we have not had any upheld complaints and because we review and are close to our clients far less problems occur. I imagine the percentages from the direct salesforces are far higher.

I feel this company’s stance is a little unethical, and even if they are correct, legally, I feel the client is entitled to some compensation, even if ex gratia.

The client and myself are quite willing to go to court as I have the copy proposal in the representative’s own handwriting but should we need to do this?I doubt if the FSA and ombudsman are interested in small cases like these.

PS RobertsIFA,Tamworth

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