Refunds of "trail" or "renewal" commissions

Cook_County

Given that this is a money saving site it must be worth saying that I like many of us have collected several different pension plans over the years.

Some of these are paying commissions amounting - I believe - to a few hundred pounds each year to the IFA who sold the policy several years back.

My understanding from reading a few bits & pieces in newspaper articles some months back is that there are a few refund only IFAs around who will split this "trail" or "renewal" commission with me (technically my pension plan) so that my pension plan will be a few hundred pounds better off. Of course they will also receive some of the money from the arrangement but nonetheless I would also be better off too in the long run.

How though do I find this type of refund only IFA who will handle pension funds? Are there any recommendations that I and other MSEs should follow?

exil

Intelligent Money specialise in this.

If this sort of thing takes off, IFAs will stop charging trail commission and will instead charge more upfront or move to fixed-fees - which will not be good news for small investors. There is no such thing as a free lunch - well not one that everyone can have, anyway.

dunstonh

Some of these are paying commissions amounting - I believe - to a few hundred pounds each year to the IFA who sold the policy several years back.

If only that was the case.

How though do I find this type of refund only IFA who will handle pension funds? Are there any recommendations that I and other MSEs should follow?

You have to be wary here as you only get paid trail if the advisor selects trail. Most will go for full upfront commission with no renewals. Once a plan gets paid up, there is no trail or renewal commission being paid.

So, if you sign up for one of these sites that charges you an annual fee for the service and refunds the commissions but no commision arrives, you still have to pay the fee.

I have transferred hundreds of pensions over the years to my agency and only a tiny fraction of them pay renewals or trail. The amounts are small as well. If you do pick a company that does pay renewals then you are looking at around £5pm on a £250 pm premium. If no payments are being made, then no renewals are made either. Last week I got £4.39 in agency transferred renewals from 7 policies. It costs more in the admin dealing with them really.

Cook_County

I am still in a situation where advisers who I actively dislike or just don't know due to business takeovers will receive trail commissions in the future.

I can cancel the relationship but would like to benefit financially. Is there no way of doing this?

dunstonh

I can cancel the relationship but would like to benefit financially. Is there no way of doing this?

You can do it but you may end up out of pocket. The brokers that do this (basically ifas themselves) will charge a handling fee for doing it. If nothing arrives then you still pay them the money.

As I said, paid up plans pay no renewals or trail.

EdInvestor

CC

You might like to have a chat with www.cavendishonline.co.uk about moving your business over to them.

Perhaps you can come to an arrangement as an MSE poster about not paying any fees if there is no trail saved.

whiteflag_3

Cook_County wrote:

I am still in a situation where advisers who I actively dislike or just don't know due to business takeovers will receive trail commissions in the future.

I can cancel the relationship but would like to benefit financially. Is there no way of doing this?

Why dont you contact the pension companies yourself and ask them if they are paying renewal or trail. :idea:

If they are not you can rest in the knowledge that the advisers that are unfortunate to have your plans on their agency are carrying the liability for any ongoing issues that may effect your plans for free!

Sounds like a great deal to me