True Potential redress offer

RogerPensionGuy

This is an interesting thread, it just shows if organisations are offering the likes of 8% commission within the rules of regulations and government oversight it's the real Wild~West and it just goes on.

Another lesson that's helpful for customers and clients to have a fair understanding of these practices and just how they can operate, stories like this certainly make me nervous.

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True Potential Sets Aside £100 Million For Redress Scheme | TLW Solicitors https://share.google/HNl2nFLXAIN3K0Fx9

dunstonh

This is an interesting thread, it just shows if organisations are offering the likes of 8% commission within the rules of regulations and government oversight it's the real Wild~West and it just goes on.

Many did wonder how they got away with it; however, technically they're not offering 8% commission on the product. They were offering it at business level for the client bank.

Another lesson that's helpful for customers and clients to have a fair understanding of these practices and just how they can operate, stories like this certainly make me nervous.

It goes on in every walk of life. If you start worrying about it, then you won't end up dealing with any business in any area.

wheresmymoney2

Has anyone thought about the role of the IFA that recommended TP ?

If TP have been forced to pay penalties why not the IFA who benefited from the 8% commision?

dunstonh

If TP have been forced to pay penalties why not the IFA who benefited from the 8% commision?

Because they were not an IFA at the time. They were a representative of TP.

Ibrahim5

Pay penalties? They should be behind bars.

BurkieDaddyo

I’ve raised my complaint this week and just wondered if anyone know roughly how long they are taking to respond (are they using the full 8 weeks). And does anyone know a rough guide/calculation of payment amounts being offered (appreciate they are all different, but just a guide)

BurkieDaddyo

has anyone had experience with true potentials redress/compensation regarding the 8% commission paid to advisors.

I’ve raised my claim a couple of weeks ago and was just wondering if anyone knows

How long do they usually take to offer a resolution

Is there a rough calculation to give an idea of size of redress to expect

Brie

Never heard of this scheme but I'm curious to whom you paid 8% commission.

flaneurs_lobster

Previous thread about the True Potential Redress Scheme

https://forums.moneysavingexpert.com/discussion/6664584/true-potential-redress-offer

OP has posted the same query there too.

dunstonh

has anyone had experience with true potentials redress/compensation regarding the 8% commission paid to advisors.

Yes, there is a frequently responded-to thread in this section.

I’ve raised my claim a couple of weeks ago and was just wondering if anyone knows

How long do they usually take to offer a resolution

You didn't raise a claim. You raised a complaint. However, the FCA instructed the firm to put in place a Section 166 Skilled Person Review.

A section 166 review requires the appointment of an independent third party to review practises around transfers to TP on an individual basis for everyone within a defined period. You would have already been included if you fell between 2019 and 2023 and the transfer arose from an ex-advisor who was paid an 8% incentive to move assets onto the TP platform. If you didn't fall between those dates, you are not part of the review and it's unlikely that there will be an issue and your complaint will be dealt with under the normal complaints process (and statistically likely to be rejected, as there were no issues identified on a widespread basis outside those dates or their normal sales process).

If you did fall between those dates and used an ex-advisor who was paid an 8% incentive, then you are automatically in the review. You didn't need to complain. You were already part of it. But your complaint now will not be handled under the normal complaints process but passed to the independent third party. You will be expected to get a response that complies with the complaints process, but the outcome will defer the decision on your complaint as it falls within the review. You will still get the right to refer it to the FOS, but it would be pointless to do so as that won't speed anything up; the minute the FOS are told you are part of a Section 166 review, and it is awaiting assessment by the independent third party, that will effectively end the FOS participation. Once you have the assessment by the independent third party, you can still go to the FOS at that point if you reject their findings.

Review schemes are usually slow. The third-party employed will have only a finite number of people and may have to process tens of thousands of cases. The third party has to obtain information often from multiple sources and allow them time to do so. They then have to assess all that information given to them, which is a time-consuming task, then go back to TP who will be given a small window with each case to look at the response and provide a follow-up. Just in case something's been missed. You will then be told whether your complaint has been upheld or rejected, and that a calculation will follow in due course. Sometimes the gap between that notification and a further letter telling you what the redress will be can be quite large. Often because the work is phased into batches and workflows.

A common misconception is that you will get the 8%. However, you never paid 8%. TP paid the 8% from their own funds. And the 8% doesn't come into it. Each individual transfer will be assessed on the usual transfer expectations for a client file. If the transfer is deemed compliant, then you will get nothing. If the transfer client file is not compliant, then they will need to contact your old provider and ask what your values would have been if you had stayed with them and compare them to what you have now. If you're better off, you get nothing. If you are worse off, you get the difference plus interest.

In other S166 reviews that were carried out in the past, it was not uncommon for a client file to be classed as non-compliant but for no redress to be paid if you were financially better off because of it. This was particularly evident when people moved out of with-profit funds into higher-equity unit-linked funds. The same will apply to anyone who also moved up the risk scale and took on more equities than they had before.

The reality is you won't know until you're told, and it could be some time.