Claw Back Commission

huckster

Badger

You need to make the letter an official complaint to Salisbury Financial services asking them to justify their position, in regard to the points raised in your post. Ask them for their final response, as you will be making an official complaint to the FOS. Send by recorded delivery.

As you know the FOS won't look at this until Salisbury have issued their final response or eight weeks have passed since you registered the complaint without resolution.

This is the best way to go forward. Salisbury will have to pay a £500 case fee to the FOS, if you decided to complain to them. So this should focus their attention on your complaint and they might decide to seek an amicable solution.

Badger72

Thanks Huckster. Are the points valid and correct though?

huckster

Badger72 wrote: »

Thanks Huckster. Are the points valid and correct though?

Yes I believe so. But you could always phone the FSA's Money made clear helpline to check on this.

http://www.moneymadeclear.fsa.gov.uk/

Badger72

Should I add something a bit more amicable at the end? I don't mind paying him for the work he put in but 2k for 2hrs seems a bit excessive

Quentin

If your argument for not paying is that no fees were agreed, then now offering a part payment seems to suggest you did agree to pay, but are now wanting to dispute the amount being charged.

huckster

Badger

I agree with Quentin.

Why don't you phone the FSA's money made clear helpline and explain what happened. They will advise you of your rights and then you can write an authoritive letter to Salisbury.

Badger72

Well, verbally I was not made aware. He sent me a copy of arrangemnt which does mention this but its not signed and I don't have a copy of anything that is signed. I did obviously sign something and within this is probably the mention of the claw back.

huckster

Badger

My understanding is that they have to provide information upfront about fees/commision and any clawback. You have to agree to this, before they start signing you up for different products. They can't rely on providing you with some document after the event.

As I said before, you need to phone the FSA to explain in the full how the transaction was entered into and they will explain your rights. I don't think there is any point posting additional comments back and forward on a forum such as this. Without the full story, which would be a very long post, how can anyone know whether the IFA acted properly.

Quentin

Badger72 wrote:

I did obviously sign something and within this is probably the mention of the claw back

In that case you may have no grounds to complain!

If you think you may have signed an agreement, then best to simply at this stage send a reply to the letter, saying you cancelled the policy after reading it and did not expect any charges were due in the circumstances.

Then see what (if anything) he says in reply and take it from there. (If there is a binding written agreement it will be mentioned in the reply! If so, then cross that bridge at the time by asking for a copy and getting further advice).

dunstonh

IFAs have to offer a fee structure and a commission structure. Tied agents, multi-tied and whole of market advisers do not. However, they can choose to do so.

If you choose to offer fee based terms then these must be published and agreed. The FSA do not have any rules on what the fees must be except they they should be fair and not be a deterrent and should not be structured so they are the same as commission.

Networks (compliance companies to advisers) will recommend that adviser get a fee agreement signed as without one there is little chance of any court agreeing that a fee was agreed in the first place.

If a company chooses to work on commission only and not offer fee basis or fee with commission offset then that's the risk they take if a policy cancels. They cannot come after you for the commission as you didnt pay the commision in the first place. A number of unscrupulous advisers will try it on though. They huff and puff and threaten but if there is no evidence of fee agreed then they dont have a leg to stand on.