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Post by bracknellboy on Jan 19, 2016 8:33:53 GMT
A question I should have asked before as I have a meeting later today where it is relevant. Can anyone advise on the position with regard to trail commissions on products invested in some time back and specifically what happens when the IFA who was the beneficiary is 'retiring' and sells on their business ? My assumption is that 'new IFA' buys the business of the old IFA they are entitled to receive those commissions. Does the person who originally made the investment/bought the product have any rights to claw back future commision payments ?
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captainconfident
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Post by captainconfident on Jan 19, 2016 11:14:33 GMT
I don't know, but have you got my pen?
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JamesFrance
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Post by JamesFrance on Jan 19, 2016 11:20:10 GMT
I seem to remember that if you change advisers the trail commission goes with you to the next one. The execution only ifa I used in the past for peps and isas refunded half of it to me and deducted the initial one also.
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Post by bracknellboy on Jan 19, 2016 11:31:29 GMT
I don't know, but have you got my pen? The IFA nicked it.
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Post by longjohn on Jan 19, 2016 14:03:49 GMT
A question I should have asked before as I have a meeting later today where it is relevant. Can anyone advise on the position with regard to trail commissions on products invested in some time back and specifically what happens when the IFA who was the beneficiary is 'retiring' and sells on their business ? My assumption is that 'new IFA' buys the business of the old IFA they are entitled to receive those commissions. Does the person who originally made the investment/bought the product have any rights to claw back future commision payments ? I had this problem with an insurance bond product that my wife had been sold (before I met her). The bond tracked the base rate + 1% and had a trail commission of 0.75%.  The original adviser had been taken over and the company had been resold. So she was paying commission to an adviser she hasn't had any contact with. The only fix was to cash in the bond and reinvest elsewhere. If she reinvested now via an adviser she would have made a one off payment for the advice. All modern products are free of trail commission now, however existing products are more complicated. See FCA Link for options on how to approach the adviser. John
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david42
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Post by david42 on Jan 19, 2016 16:34:52 GMT
My understanding is that the Retail Distribution Review is unbundling commissions of investments funds. So by April 2016 your funds should have been converted to 'clean' funds that include no commission. Instead you will need to pay explicit charges for any advice or administration of your funds.
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Post by bracknellboy on Jan 19, 2016 19:45:47 GMT
.... The bond tracked the base rate + 1% and had a trail commission of 0.75%. The original adviser had been taken over and the company had been resold. So she was paying commission to an adviser she hasn't had any contact with. ... I'm tempted to say that those two sentences sum up in a nutshell the historic operation of the retail financial services industry in the UK.
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captainconfident
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Post by captainconfident on Jan 19, 2016 20:12:39 GMT
What have you done with it? I know its you, Bracknell.
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The original adviser had been taken over and the company had been resold. So she was paying commission to an adviser she hasn't had any contact with. 