Staff feel 'railroaded' by Co-op IFA takeover transfer

8 October 2010 8:00 am | By Natalie Holt

Employees of the Co-operative Bank’s IFA arm have hit out at the way the transfer to new owner Ashcourt Rowan Financial Planning has been handled.

Ashcourt Rowan agreed last week to buy Co-operative Bank Independent Financial Advisers.

Cifa’s 52 staff, including advisers, sales managers and support staff, were transferred to Ashcourt Rowan from October 2. But several Cifa employees have complained that there has been a lack of consultation over the deal.

One adviser told Money Marketing: “The whole thing seems to have been railroaded through. I think we have been treated shabbily by the Co-op. What we cannot understand is that Unite is telling us they are still holding post-transfer negotiations. The deal has been done and they are still negotiating.”

Another adviser says advisers have been deregistered from the FSA with no indication when they will be registered under Ashcourt Rowan. In the interim, IFAs cannot advise.

A further adviser says: “Many of us have been loyal employees and have a long service record with the Co-op. This is the most undignified exit for the company I could think of. We have had no thanks, no apologies, nothing.”

A Co-operative Financial Services spokesman says: “Throughout this process, CFS has sought to minimise the impact on colleagues and is pleased that positions were secured for all advisers with Ashcourt Rowan, enabling them to continue their roles with a business that aims to grow within the IFA market.

“We are confident that our consultation process with colleagues has been fair and meaningful. Under our Transfer of Undertakings (Protection of Employment) obligations, colleagues will have an equivalent package, if not better post transfer.  Colleagues have also been offered some protection on pensions which is out of scope of TUPE.”

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