On the Trail of an Intelligent commission

Isa and Pep investors can recover the tax break they lose from April by getting IFAs and fund managers to boost their annual cash take by joining a new - and controversial - organisation.

Intelligent Money offers to pay back every penny of "trail commission" in return for a £35 a year fee. Trail - an annual payment to sellers - is usually paid on most stock market Isas (but not investment trusts) to the seller at 0.5% - £500 a year on a £100,000 portfolio. But it can be transferred.

"It is supposed to pay for continuing advice. But how many who bought one Isa ever gets real help in subsequent years from IFAs?," asks Intelligent Money boss Julian Penniston Hill. "And what about unit trusts and other investments bought directly - you get absolutely no after sales service but you could qualify for the money."

He estimates that a £10,000 Isa growing by 7% each year is worth £8,595 in renewal payments over 25 years. There are also big savings on endowments, pensions and with-profits bonds.

"The £35 pays the administration costs. I make my money on the interest on the commission flow before I send it back," he says.

Intelligent Money has run into a wall of opposition.

Sellers organisation the Life Insurance Association warns signing up to Intelligent Money will lose investors access to advice and periodic discussions with advisers, unless they pay more." "So what?," counters Penniston Hill. "I offer a choice. They just take your money."