Telling tales about what is legal
It is amazing how many so-called financial advisers simply lie. For many years, unscrupulous advisers claimed (and some still do) that you have to take out a retirement annuity (RA) until the age of 55.
But this is not true. Tax legislation states that you cannot mature an RA before the age of 55, so what you have invested must stay invested until then.
However, you can pay contributions for any period you wish.
Then, in an email from a reader, I came across a new lie. The reader was dissatisfied with the advice she had received from a financial adviser; in fact, the reader felt that his advice was so bad that he should repay the commission. The adviser’s response was that it is illegal to repay commissions.
I am sure the financial advice ombud, Noluntu Bam, would like to hear that her determinations ordering errant financial advisers to compensate consumers for losses are probably also illegal in the eyes of this unscrupulous adviser!