OpinionMay 1 2013

Doing the right thing and acting fairly

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I asked Aviva for an illustration. This was sent to me stating there was 1 per cent commission payable (£410). I queried this with Aviva on two occasions, checking that commission applied due to the new RDR rules on commission. I was advised on both occasions it was correct as this was part of a group PPP arrangement.

Therefore I advised my client he would not need to pay a fee as I was happy for my firm to accept 1 per cent and based on other protection plans arranged for my client which had paid commission. The transfer was completed but Aviva then advised me they had made an error and no commission was payable. They then paid my firm the commission (in error) and then advised me I had to repay it (clawback).

I complained to Aviva stating this was unfair and that while I understood under RDR rules that commission should not have been paid it should however simply write off the debt or make a compensation payment to my firm for what was its error and for an amount equal to the clawback.

Aviva refused this request on two occasions I have complained, stating it regretted giving incorrect information, that illustrations are for illustrative purposes only, that it was not obliged to honour illustrations and that it cannot breach RDR rules.

I have not asked Aviva to breach the RDR rules. I have asked it to either write off the clawback or compensate my firm for the amount in question. It is not about hiding behind ‘rules’, it is about acting in a fair manner and doing the right thing, but it does not seem to understand.

I hope you would agree this treatment is extremely unfair and shows no regard for the sole trader IFA who is trying to come to terms with the implications of RDR. The amount in question is just £410 but it is the principle that applies.

Bhavesh Chande


Chande Independent Financial Advisers



Aviva responds:

Having reviewed this particular situation we acknowledge that we made an error in writing this business on a commission basis.

We apologise in full for our mistake and the inconvenience caused to our adviser. We will be compensating him as a priority so that there is no financial detriment to him.”