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