Clerical Medical branded 'anti-TCF' after ditching SIPP deal

The move means around 2,000 clients currently paying an annual management charge (AMC) of 0.5% on the plan may now have to pay 1.25% and has led to a complaint by an adviser to the FSA regarding treating customers fairly (TCF). Since the launch of the RSP in 1997, Clerical Medical has paid the underlying James Hay fees on the plan when clients had £30,000 or more invested in its funds. Adviser clients say the arrangement was the product’s main selling point. But now the company says it is “unable to continue” with the charges arrangement, with a lack of profitability on the product unders...