FSA urged to force firms to 'novate' clients they can not service

Smallwood is demanding organisations facilitate ‘novation’ – the agreed en masse transfer of all client details from one company to another – when an adviser leaves the business. While some firms and networks permit novation, others insist on contractual agreements at the outset stating clients belong to the company, not the adviser. Elsewhere, some businesses only allow individual ‘change of agency’ agreements, which advisers argue are often used as a means of pressing clients to stay with the firm. Fresh arguments over who ‘owns’ customers flared this week after wealth manager To...