Adviser firms refusing to allow the "en bloc" transfer of clients when an IFA joins the company may be in breach of treating customers fairly (TCF) principles and are likely to struggle in a post-RDR world.
National adviser 2plan Wealth Management is calling on the FSA to step up its regulation of ‘novation’, arguing some of the bigger, acquisitive firms do not allow the practice out of greed for commissions and recurring income streams. An adviser leaving one firm to join another should be able to offer their clients a “seamless” transition, it adds, with ongoing service and minimal disruption. “Those that do not [allow novation] are causing many smaller advisers, and their clients, real headaches, not to mention serious delays in accessing information which ultimately means it is the cli...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
