Is it safe to use Commshare?

By THIS IS MONEY
Updated:

 

Is it safe to use firms such as Commshare who promise to share renewal commissions if you appoint them as your agent? PI, Lancashire

Mike Pendergast, independent financial adviser, with Zen Financial Services, said: 'Renewal commission is generally used to remunerate IFA's who offer annual reviews of holdings – or this is how it should be used!

I would check the terms and conditions of the offer and make sure how the commission will be shared and on what basis. Bear in mind renewal commission is generally quite low – sometimes around 0.5% - 1% of the annual premium – so don't expect to make a fortune!

Also bear in mind Commshare do not offer advice – you select the investment yourself, so in effect if you are happy with self-selecting investments you may be better going direct via a fund supermarket – if Commshare are not advising you, why should they get any of the commission !?

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