Trailing Commission

welshpossum

Hi, I've just modified a term insurance and mortgage protection policy with LV and noticed they intend to pay trailing commission to an IFA i haven't used for about 15 years. Is there anyway I can terminate this arrangement, transfer it to another IFA who will share the commission with me or even better just pay it to Charity ?:j

dunstonh

There is no trail commission on life assurance products. There is either indemnity commission or level commission with the potential for renewal commision if indemnity taken after x number of years.

Is there anyway I can terminate this arrangement, transfer it to another IFA who will share the commission with me or even better just pay it to Charity ?

It will cannot be rebated to you. It can be transferred to another IFA. However, typically it is pennies.

welshpossum

They're paying about £50 to the old IFA despite
1) me not receiving any independent financial advice (for over 15 years)
2) me actually reviewing my own personal circumstances and making the change myself.
Does anyone know an IFA who would be prepared to donate this to a charity of my choice with the opportunity of business?

dunstonh

1) me not receiving any independent financial advice (for over 15 years)

Renewal commissions are not paid to provide ongoing advice.

2) me actually reviewing my own personal circumstances and making the change myself.

In these cases you are better off using contracts designed for the DIY market. Although in many of those cases there is still some degree of ongoing payment to the retailer.

Does anyone know an IFA who would be prepared to donate this to a charity of my choice with the opportunity of business?

I doubt it because the cost time and effort of dealing with it would probably take it down by half. Plus, the IFA would be required to consider it as an offset against fees if you are using them for advice going forward as you suggest.