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IFA slams Barclays Wealth over client letter

An adviser has hit out at Barclays Wealth after it wrote directly to a client asking for maturity instructions for a structured product.

Key Independent Financial Services director Cliff Hammond says Barclays Wealth should have sent its maturity options form to him as the client’s IFA.

The two-page letter sets out the three options at maturity and instructs the client to complete and return the form in the prepaid envelope provided.

Hammond says: “We have trusted our clients to Barclays Wealth and this is a betrayal. Barclays Wealth is trying to bypass us. That is radically wrong, especially as it is critical to give proper advice to clients about their maturity options.”

A Barclays Wealth spokeswoman says it is company procedure to send a pre-maturity letter to the client’s IFA several weeks before a structured product matures. A letter is then sent to the client informing them of the impending maturity. Shortly after maturity, a letter is sent with a maturity instruction form to the client only.

The spokeswoman says: “We do not write to the IFA at maturity as we feel that by recommending that clients contact their IFA pre-maturity to discuss the options, we are giving them enough time to arrange a meeting.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Any IFA who regularly services their clients would have the date of possible maturity in their diary and be approaching the client before the provider. Then again, trail commission isn’t paid on Structured Products, is it? Hence the on going debates about RDR and trail commissions.

  2. don’t shoot the messenger you should have a decent diary system to pre-empt any contact – i’ve no sympathy. A letter to the clients advising them to expect contact from Barclays and to contact you upon reciept – arrange meeting now!

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