An industry report by Fitz Partners has estimated that just under £1bn is still being deducted from older investment and pension plans in ‘hidden’ trail commissions and paid to financial advisers.
Trail Fees Paid from Old Plans
Commission for most policy types was replaced by Adviser Charging Rules on 01/01/2013. However, for many policies set up before this date, any hidden or ongoing trail fee/commission can still be and probably still is paid to your financial adviser, even if you do not deal with them anymore. For many investment plans such as ISAs, these stopped, but for many pension schemes and investment plans, trail adviser fees are still paid.
How much is your bank still getting paid each month on that old pension you took out years ago? Have you ever wondered why your old financial adviser does not contact you? It is because they would all have to stop the old trail commission/fee and you accept new ‘terms’ after 01/01/2013. Watch our video on advisers not contacting you.
We are Fee Only
We have long campaigned for fee transparency and many will know that when you contact us, you are quoted set fees, in writing both by email and then hard copy. We do not charge or take hidden percentages.
The FCA is considering new rules to ban all old style ‘trail fees’ and ‘trail commissions’ from policy that pre date 2013. You could sit tight and wait but you may wish to contact us for a review of your existing plans and we will cancel/stop any hidden fees anyway.