Advisers react to Massow's trail rebate business

Industry reaction to ex-IFA Ivan Massow's latest venture, which aims to divert 'unfair' ongoing commission payments from advisers to consumers, veers from disdain to disbelief.

Paymemy.com will rebate 80% of ongoing commissions to customers, while keeping 20%.

Here's what some of our readers have been saying:

David Quarrell

Surely two "wrongs" don't make a right? how can he justify taking trail commission post RDR without offering ongoing service himself? Has he not just a one year window of opportunity and given the FSA's stance on positioning your business by taking more trail pre RDR I cannot see how the FSA would let him trade.

Ken Durkin

There was always this danger for IFAs who sacrificed initial for more trail commission.

Fraser Brydon

Not a very clever business model is it? He'll take a slice of the cake and do nowt for it...greed, pure and simple. Does our industry no favours at all.

Harry Katz

I wonder if the press articles or potential customers have any knowledge of how many times this ‘financial expert' has been bust, or how many 'off the wall' type ventures in which he has been involved. One thing always seems to stand out - he does well for himself and basks in the publicity. I wonder what happened to his political ambitions? Even aspiring to mix in those circles in itself speaks volumes!

Duncan Carter

This guy is always up to something. This is just another 'easy money' scheme which some will fall for. Give it a year!

Nick Bamford

Refunding commission to the client from a pension plan is an unauthorised payment and will result in a tax charge. HMRC may have something to say about this business plan

On Twitter

Damian Davies (@thetimebank)

IFAs who have strong relationships with their clients, whatever business model, should not fear Massow's new business-it's all about service

David Ferguson (@david_ferguson)

Massow idea looks v similar to moneyspider and IntelligentMoney. Guess there's scope for better execution.

Richard Allum (@TheParaplanner)

Massow not the only one after your trail moneyspider.com/nofee.asp

Stephanie Pickering (@stettip)

@TheParaplanner another not offering advice only info! If so called clients want to use these services they are not clients - let them go!

Stephanie Pickering (@stettip)

@TheParaplanner good to see they want to save people monies on pensions yet use an 0871 contact number charging 8p per minute!

Chris Budd (@ovationchris)

@thetimebank Not heard of it until yr tweet, just read up on it. A bit shoddy, IMHO. 'Up to 1.5%' - that's plain scaremongering

Mark Hughes (@MarkJHughes)

Ivan Massow, more a chancer than an entrepreneur.

Chris Budd (@ovationchris)

@thetimebank FSA have specifically said any regular income must pay for a service. His business is totally non RDR compliant

Martin Bamford (@martinbamford)

If you're an investor who receives no ongoing service in return for trail commission, simply move to a good IFA! #massow