View more on these topics

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


Bankhall’s multi-tie plans delayed

Bankhall’s plans to launch a multi-tie have been delayed because of mortgage regulation while its profits have slumped since last year.

AIFA’s view – Paul Smee

This is my last attempt at a column. There is much which I will miss about the IFA sector and it has been a privilege to represent (most of) the IFA community for five years.

Paul Evans

Axa Sun Life’s chief executive has brought the firm’s protection products to the market bang on time and he hopes to provide brokers with flexibility but he believes that multi-ties are inevitable.

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm