IFA defends bulk client transfer stance

Ken Hayden, founder of Financial Management Services, says bulk transfers, a process otherwise known as ‘novation’, pre-suppose relationships exist between individual advisers and clients, not between client and IFA practice. Hayden says the “real problem” with the financial advice sector is that “individual advisers believe themselves to be just that – individual”. It follows calls from national adviser 2plan Wealth Management for the FSA to step up its regulation of novation, arguing firms refusing to allow ‘en bloc’ transfers may be in breach of treating customers fairly (TCF) principl...