This is yet another life office following suit and stopping legacy commission to keep more for themselves at the client’s expense.
How is this in anyone’s best interest other than the insurers? I think it is best to boycott the companies involved wherever possible and refer cases to the ombudsman for existing cases as this is increasing clients’ costs at no fault of their own and may well break previous contractual arrangements.
This is yet another unforeseen knock-on effect of the RDR, which was supposed to improve things for clients not make matters worse – what a great success for the meddling regulator.
As charges are being driven down and passed on to consumers, insurers are now making less and less profit on client-friendly new business so they are being forced to extract whatever profit they can from anywhere else to maintain margins to stay in business themselves. At this rate soon there will be no insurers left that anyone will be able to deal with and trust to not pull a fast one on advisers.
Dennis Burling
Director
DPI Financial Services
Bristol
