HSBC advisers took 15% commission for SIPP set ups

A HSBC adviser earned £9,000 initial commission - taken over 12 months - for arranging a self-invested personal pension (SIPP) into which monthly contributions of £5,000 were to be paid. The fee represents a 15% deduction on the amount the customer contributed over the year, and was described by the ombudsman, who was judging suitability not value for money, as "significant". The details disclosed in the FOS judgement highlight the size of commissions earned by some bank intermediaries for giving advice. Several banks, including HSBC, have stopped offering financial advice to the w...