Mercer annuity fees

GrahamLM52

I should preface this by saying I know I could go to an IFA and I’m also aware that I should get quotes from more than one place. Having said that, this question is specifically about Mercer and their fees for setting up annuities.

Mercer are about to quote me for an enhanced annuity. 

During email exchanges the subject of fees came up and I was told by email that “I can confirm that these forms are a free service, however proceeding with an annuity, there will be a fee of £600.” That seems quite clear and unambiguous.

However, when reading Mercers Terms of Business under “Our Remuneration” are details of how payment is to be made for “settlement of our fees should you not proceed to implement the annuity”.

This seems at odds with their earlier confirmation that fees are only payable if you proceed with an annuity arranged by them.

To clarify things I asked “so, if we complete and return the Medical Application Form, you provide quotations for an annuity and we decide not to proceed with you. Is a fee payable at that point?

Back came the answer “the fee is only charged if we put the annuity in place for you. The initial illustration pack and recommendations are free of charge”.

So what is right? The emails or the Terms of Business? Or am I missing something here?

Has anyone else used Mercers? If so, do you pay a fee if they quote and you do not proceed with them?

Marcon

GrahamLM52 said:

I should preface this by saying I know I could go to an IFA and I’m also aware that I should get quotes from more than one place. Having said that, this question is specifically about Mercer and their fees for setting up annuities.

Mercer are about to quote me for an enhanced annuity. 

During email exchanges the subject of fees came up and I was told by email that “I can confirm that these forms are a free service, however proceeding with an annuity, there will be a fee of £600.” That seems quite clear and unambiguous.

However, when reading Mercers Terms of Business under “Our Remuneration” are details of how payment is to be made for “settlement of our fees should you not proceed to implement the annuity”.

This seems at odds with their earlier confirmation that fees are only payable if you proceed with an annuity arranged by them.

To clarify things I asked “so, if we complete and return the Medical Application Form, you provide quotations for an annuity and we decide not to proceed with you. Is a fee payable at that point?

Back came the answer “the fee is only charged if we put the annuity in place for you. The initial illustration pack and recommendations are free of charge”.

So what is right? The emails or the Terms of Business? Or am I missing something here?

Has anyone else used Mercers? If so, do you pay a fee if they quote and you do not proceed with them?

There's only one way to get a definitive answer which will set your mind at rest: go back to Mercer by email, point out the discrepancy and ask them to confirm (again by email so you have it in writing) which is correct.

GrahamLM52

Hi @Marcon I have asked them by email. Twice.

The first response I received was an email stating “I can confirm that these forms are a free service, however proceeding with an annuity, there will be a fee of £600.” the second email (after I pointed out the discrepency) stated “No, the fee is only charged if we put the annuity in place for you. The initial illustration pack and recommendations are free of charge”.

I have had this before, where a "customer service agent" has been adamant about something. Then, when it later turns out they were wrong and the Terms and Conditions were correct, the business digs it's heels in and insists that Terms and Conditions overide anything communicated by a member of staff and I owe them £xxx.

Hence my asking if anyone had experience of Mercer and their fees.

Marcon

GrahamLM52 said:

Hi @Marcon I have asked them by email. Twice.

The first response I received was an email stating “I can confirm that these forms are a free service, however proceeding with an annuity, there will be a fee of £600.” the second email (after I pointed out the discrepency) stated “No, the fee is only charged if we put the annuity in place for you. The initial illustration pack and recommendations are free of charge”.

I have had this before, where a "customer service agent" has been adamant about something. Then, when it later turns out they were wrong and the Terms and Conditions were correct, the business digs it's heels in and insists that Terms and Conditions overide anything communicated by a member of staff and I owe them £xxx.

Hence my asking if anyone had experience of Mercer and their fees.

I completely understand your frustration - we've all been there one way or another with various organisations.

Maybe go back and ask to escalate? You really do need the answer direct from Mercer. Other people's experiences aren't going to put your mind at rest, because you cannot be certain they have been subject to  the same T&Cs. 

DRS1

£600 sounds like a low fee for an annuity.  Have you checked what commission is payable on the annuity (it may be visible only when you see the quote).  I am wondering if the £600 is on top of the normal commission.  I am also wondering if the fee you get charged for not proceeding is the commission that would otherwise have been payable to Mercers.