No Advice Annuity Man Gets Refund

No Advice Annuity Man Gets Refund.

We have long laboured on this website to make you, our readers and clients, aware that going direct is not always the best course of action (see our video and article on the 1st of 5 Deadly Money Mistakes):

• 5 Deadly Money Mistakes Article
• 5 Deadly Money Mistakes Video

In a recent case, a seriously ill man, Wayne Davies, received details of his policy from Royal London and as Royal London has a tie where it passes annuity enquiries to Prudential directly with no advice yet still get paid a commission, and the annuity was set up.

No Advice = No Blame = No Claim

• Mr Davies may have been entitled to an enhanced annuity
• Mr Davies may have been better not annuitising at all, if he has not taken any benefits and then dies, the whole fund could be paid out to loved ones tax free.
• Full commission was paid and no advice was given so there is no liability (this staggeringly is allowed by the Financial Conduct Authority)

A campaign was established by Dr Ros Altman of Saga, and we have to commend her for it, both companies have reversed the application and Mr Davies last week received all his money back.

Comment:  As Ever - Beware No Advice Sales

We are not critical of any of the parties involved, the money has been refunded, the client is in no worse financial position now.  But what about the thousands of other policyholders that have many savings and pension arrangements with a range of companies that have such arrangements and simply refer you on, with no advice, it is in the small print that they are doing so, and the referring company gets paid.

No advice is more risky than you think and you may end up paying more and getting less.  We believe the regulator is not serviing the public in that 'no advice' selling should not be allowed full commission but should be cracked down upon.  It is a national scandal that you can pay more, get worse financial services products and have no protection as no advice was given.