Tax Exempt Savings Plans [TESPs]

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  • masonic
    masonic Posts: 23,278 Forumite
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    planteria wrote: »
    joke about fairies if you like, but what i wrote was right:)
    No, it was wrong.

    http://www.healthyinvestment.co.uk/introducers/commission.php
    Commission is payable directly to the Introducer for all leads that Healthy Investment converts into a new policy at the following rates:

    Tax Exempt Savings Plans - 40% of the first years premiums

    That's a direct statement from the Friendly Society - premiums taken from the member and paid directly to the introducer. This definitely refers to lay introducers, not IFAs, since IFAs have been banned from receiving such compenstion because the FCA thinks it leads to mis-selling, which it does.
  • planteria
    planteria Posts: 5,321 Forumite
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    the new member doesn't pay the introducer any money 'directly'. several of the friendly societies are looking to grow their with profits funds quickly, both by sales, and also considering acquisitions/mergers. some of those societies are encouraging members to introduce other members, and they are paid for doing so, by the society, from the fund.
    there is a of a race for scale. fwiw i think some of the FSs ought to link up in order to generate that scale in the interests of their members. i wouldn't be surprised if there is more consolidation during 2015. if it makes financial sense, bring it on:D
  • colsten
    colsten Posts: 17,597 Forumite
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    planteria wrote: »
    the new member doesn't pay the introducer any money 'directly'.

    Leaving aside that you have totally ignored what masonic posted in post #342: the fact remains that referral money comes out of the accounts of customers.

    Unless you are indeed making a case for a TESP fairy that magically finds money for the referrers.
  • planteria
    planteria Posts: 5,321 Forumite
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    sorry, no, i don't accept that to be the case in my experience. i would only open a TESP if i was planning to stick to the term. i wouldn't have to pay £120, or any money, to an Introducer/Agent/IFA. and at no point would there be a £120 deduction from my TESP.

    as per the above, looking at the illustration i have here, right from the outset my Sum Assured, upon which bonuses are calculated throughout the term, are higher than the total contributions I will make over the term.

    anyone else here who has a TESP able to confirm or dispute this?
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