The Financial Services Authority (FSA) is asking former Honister Capital IFAs to detail their exposure to Arch Cru and Keydata, as well as any previous pension transfer activity, as the advisers seek to be re-authorised.
It has sent advisers applying for re-authorisation - either as an appointed representative (AR) of another company or as a directly authorised (DA) individual - letters asking for the information.
Earlier this month, advisory group Honister entered administration after failing to secure adequate professional indemnity insurance (PII) for its member firms.
The move has affected more than 300 businesses and about 900 advisers.
The FSA letter requests information about the adviser's exposure to Arch Cru and/or Keydata, as well as about any sales of unregulated collective investment schemes.
It also asks for the number of pension transfers conducted.
One ex-Honister adviser who has applied to become a registered individual with a DA business because she thought it would be the "quickest route" to reauthorisation, said the regulator's request for information may be enough to push some out-of-work IFAs "over the edge".
"This is a meaty letter and the information will take a considerable amount of time to process," the adviser, who asked not to be named, said.
"The information demanded is extensive and will be the sort of thing that will push advisers that have just lost their job and are in danger of losing their businesses over the edge.
"These are people that are trying to deal with all the changes required by the Retail Distribution Review at the same time.
"Many advisers won't have access to their files as they are being held by the administrators. How on earth can they provide the information requested? They may end up being out of work or unauthorised for an indefinite amount of time."
The adviser added that she felt the FSA could deal with the process more efficiently: "In my view, there should be some process by which the FSA records details of advisers that have a clean slate.
"The FSA has details of advisers that sold Arch Cru and Keydata, why can't they refer to their files?
"I am squeaky clean, I've got my Statement of Professional Standing, I've never had a complaint or recommended high-risk products and yet I am being considered guilty until proven innocent."
The FSA would not confirm whether the letter received was being sent out to all ex-Honister advisers who have lost their jobs.
An FSA spokesperson said: "It is a personal matter."
What the FSA's letter asks for:
- Exposure to Arch Cru or Keydata
- Exposure to UCIS sales
- Products advised on
- Role within Honister
- Number of clients
- Type of client
- Registered compliance concerns in the last 24 months
- Complaints over the last two years
- Confirmation of RDR status
- Key Performance Indicators
- Copies of details on 1-1 compliance meetings
- File review data - which files were reviewed and how many passed.
- A detailed description of the adviser's advice process (it should cover the adviser determines attitude to risk, suitability etc).
- Where the adviser has been allowed to sell high risk products, he/she must provide details of those sold over the last two years
- Details regarding the type of pension business conducted
- Number of pension related transactions conducted
- Number of pension transfers conducted
- Percentage of overall business that pension transfers made up
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