Entrepreneur Ivan Massow's controversial trail rebate firm has gone out of business because "it made a loss every time" it paid commission back to a customer.
Massow's Commission Cleanser, or Paymemy.com, was set up in September 2011 with the claim that it could help advisers' clients reduce the future trail commission they are due to pay for advice that they will not receive. By switching their policies to Paymemy.com, Massow (pictured) pledged to rebate 80% of future commissions to customers, while keeping the rest. The model was "no-win, no-fee", so if Paymemy.com was unable to track down the commission, the customer would not pay a penny. However as of yesterday the firm is no longer offering a commission recovery service to clients....
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
