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 clien...
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