End of non-indemnity commission

Maureen Ruddy

In response to the news about Scottish Widows’ decision to cease paying non-indemnity commission (FA, 4 December), we are a chartered employee benefits firm in Scotland about to see up to one third of our trail income lost because of certain providers’ stances on their “interpretation” of the department for work and pension rules.

Aviva is the latest to withdraw trail and level commission retrospectively, not because they disagree that for secondary market schemes the advice can still be paid for by adviser charges once fully agreed and disclosed with all scheme members, but because their system cannot deal with it post 30 November 2014, and they cannot say when it will be available.

When are those bodies we subscribe to and pay handsomely for the “privilege” of membership going to champion us professional advisers, and acknowledge the role we play in helping members understand their employers’ scheme benefits?

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We have been let down by every professional body going, and the FCA needs to understand what is happening in the corporate advice marketplace now, before “group pensions advice” becomes extinct and we professionals are put out of business.

Maureen Ruddy


Corporate Benefits Consulting