IFA's Trail commission rebate service

tech2_2

Read about this in the Telegraph Yesterday...

Can we as X or current BR's claim any money back??

http://www.ft.com/cms/s/2/00f3de78-d7c8-11e0-a06b-00144feabdc0.html#axzz1XecylcPk


http://www.paymemy.com

every little helps????

Tech2

dunstonh

Can we as X or current BR's claim any money back??

What is X & BR?

If you mean you can claim old trail back then the answer is no.

Do be aware that this sort of service has been tried before and others already exist. Indeed, many IFAs already offer 100% rebated for non servicing clients. The company in this case is a new launch trying to get on the bandwagon before trail ends in 15 months time. The company have been very clever at getting free advertising with the media.

You also need to be wary that most financial products do not pay any trail. For example, most insurance company based products, including pensions, pay not trail. It is only unit trust and OEICs that have trail and the most common figure is 0.5%. Some older contracts may have renewal payments but they are often pence at best. I have plenty of contracts paying me under 40p per month which cost more to deal with than the money is worth.

Be aware of claims like: "Paymemy.com/mission says its service could save £60,000 in trail commission on a “typical” £100,000 pension fund". A typical £100k pension fund will pay no trail commission. If you happen to be one that does have a 0.5% trail payment as it uses OEICs/UTs, then 0.5% of £100k is £500. How they turn £500pa into £60k is anyone's guess (actually its not. They inflate the figures using hypothetical amounts)