Must L&G disclose trail commission?
|Investment | Life
Asked by Manfred2011, submitted
25 October 2011.
I have an investment bond (with profits and distribution) for the last 14 years. We bought the bond from the Bradford & Bingley). When I asked Legal & General about trail commission (we have never seen or heard from the adviser since he sold us the bond) I was told on one occasion that trail commission would be paid to the adviser until the end of the policy and on another occasion that they were not allowed to give any information and that I would have to go back to the original adviser. This would be difficult since Bradford & Bingley don't exist any more.
Can Legal & General be forced to disclose and rebate trail commission?
Answered by Justin on 04 May 2012
If you have the original paperwork from Bradford and Bingley then commission should be disclosed somewhere within there, most likely in a 'personal illustration' produced by Legal & General.
Nevertheless, Legal & General should disclose to you whether any trail commission is being paid and, if so, how much. After all, it's your investment and money that's affected. So I'd give them a hard time to do so.
But given it's technically the adviser and not insurer that has to disclose commission, you might need to resort to appointing another financial adviser as 'agent' which then gives them the authority to get the details from Legal & General. However, as agent they'll also receive the trail commission ,if there is any, so perhaps use a discount broker service that rebates most of this to you.
www.paymemy.com is currently amongst the most competitive for this purpose (at least for investment bonds), rebating 80% of the commission received. So, at best you'll receive most of the trail commission and at worst you'll get to find out there is none.
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