Problems with the trail commission and the ongoing consultation were again highlighted after an Aviva mistake brought out of its pocket an adviser in favour of a pre-RDR directive. In this context, Aviva asked the client if it was possible to reinstate the fees and reimburse the missing funds from the pension policy, but the client refused and stated that there was no advice in progress. “Financial advisors should have systems in place to verify whether they are receiving all the remuneration due from suppliers.” British financial group Aviva has reached an agreement to acquire a majority stake in Wealthify Group Limited, the holding company of low-cost consultant Robo Wealthify. Aviva confirmed that the charge was stopped following a mistake at its end in January 2016 and that it was trying to correct it. The 2011 directive was early, but it was put in place as part of Aviva`s “Charge Agreed for Customer Advice” rules, meaning customers had to consent to a fee being paid instead of a standard trail commission paid by the provider. Tandy, however, felt it was reasonable to serve the customer to obtain the fee and said the issue was “complex.” He also invited other consultants to review their current payments to suppliers, as it is unclear whether this situation is a “one-off” or broader issue. This is because people who often rely on the idea of a transfer before approaching their advisor can identify the possible consequences of a previous approach, which should effectively filter out a number of potentially inappropriate transfer clients. The missed fee amounted to around GBP 200 for the period from January 2016 to August 2019, but Aviva`s mistakes could cost the consultant around GBP 2,000 by the policy deadline in 2035. He said it was “additional protection from potential rogue advisers in this room.” Mr Penny said: “This concept is an absurdity that stems from a failure to understand the problem.
The solution is a fully explicit service contract, a declaration of royalties and a mutual agreement. Black said a working triage system, where clients receive some sort of guide before they see their pension transfer advisor, would eliminate both of those problems. Martin Bamford, director of customer education at Informed Choice, agreed and said consultants should have robust systems in place to track these missed payments. . . .