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IFA claw back

Hi

When I bought my first property my IFA advised me to go for an interest only mortgage with an endowment policy to pay off the capital. As well as this I also had to sign a form regarding the commission he was to get from it. This meant I had to keep the endowment policy for at least 40 months. If I surrendered the policy within this period I then owed him the commission remaining.

Due to a change in circumstances I had to cash in the endowment policy after

32 months. I surrendered it directly with the company the policy was with, with and not my IFA.

I also incurred a slight loss as a result of surrendering early.

Now my IFA has sent me a bill for 460 quid to cover the remainder of the commission (claw-back)he was due.

My IFA has now made more from my endowment policy than i did. He stands to make even more (i'll make more of a loss) from it if I end up giving him back his extra 460 quid. ! Surely this cant be right.

Should I refuse to pay the outstanding commission explaining my loss and that I now consider it bad advice which I don't feel i should have to pay for ?

What is the best way I can deal with this ?

thanks for your time K

Reply to
James
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Depends on whether you genuinely think it was bad advice. If a car mechanic mends your car and you then write it off, do you no longer owe him the money for his bill?

The IFA did work for you for which he received commission as a fee. You then did something (knowingly) that meant that his fee was reduced. If he'd charged you an actual fee and reimbursed the commission into the plan would you expect some of the fee back? I suggest you still owe him the 'fee', but need to complain about the advice if you really do think it was bad and can make a case for that.

Rob Graham

Reply to
Robin Graham

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