Former IFA Ivan Massow has shut down his commission recovery business due to the escalating costs of FCA regulatory fees levies and professional indemnity (PI) insurance costs.
Massow’s Commission Cleanser, or Paymemy.com, was set up in September 2011 which pledged to return the majority of trail commission clients were paying if they switch from their current adviser.
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The firm said it would return 80% of the trail commission and keep 20% itself and targeted clients who were not receiving any ongoing advice.
As of 19 August 2013, Massow’s will no longer be offering a commission recovery service to customers.
The firm said it will be resending this information, plus any further updates every few days over the next two weeks, to ensure all customers are contacted and fully informed.
Massow said: "The firm had been making a loss every time it paid back commission to a customer because "the FCA class it as regulated income received by us, rather than the unregulated income rebated to the customer which it actually is.
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By GlobalData"Sadly, as we are the last of a number of commission recovery services who have been forced into closure, we are unable to recommend any other companies, but it may possible to negotiate a similar arrangement with your local high street IFA if the commissions payable on your policies are high, he added.
