About 25 years ago, I took out an Invesco Isa via a financial adviser. I recently received a letter from a financial firm to say that it can no longer provide a service, and referred to commission on this investment.
I’ve never had any dealings with this firm, so what’s going on?
Mr Walker, West Midlands
‘New rules are dredging up old products’
Michael Tomlinson, Which? Money expert, says…
It seems that this financial advice firm acquired the original firm adviser you used many years ago and it inherited your details.
Financial advisers haven’t been allowed to earn commission for arranging investments and pensions since 2013.
However, if you have products from before 2013 then so-called ‘trail’ commission could still apply, even if you haven’t used the financial adviser for many years.
You can ask the investment provider – in your case, Invesco – to stop paying commission to any financial advisers originally involved in setting up the investment.
Although in your case the company was genuine, we’ve received calls about scams relating to old investments
Recent Consumer Duty rules, set out by the Financial Conduct Authority, have resulted in financial advice firms making contact with clients that they don’t service any more. This would explain why this firm has written to you now.
Other readers who hold investments and pensions that they set up with a financial adviser prior to 2013 should check with the provider if commission is still being paid.
If you are no longer receiving advice or any service from that firm, let the provider know.
Although in your case the company was genuine, we’ve received calls about scams relating to old investments. Treat any requests for information – not to mention payments – with suspicion and make sure that you check a company’s credentials before responding.
- Find out more: New Consumer Duty launches: what will it mean for you?
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