Allied Dunbar has signed up the lion's share of salespeople from Lincoln-owned City Financial Partnerships, claim rivals.
It is understood that, of the 490 salespeople formerly emp loyed with CFPL, 120 have been hired by network Inter-All iance, 13 left to form the new IFA firm Lighthouse, 10 have gone to J Rothschild Assurance and the rest have joined Allied Dunbar or retired. Rivals says up to 300 may have gone to Dunbar.
The moves follow Lincoln's decision in September to sell its tied salesforce of 1,017 RIs. The salesforce included the City Financial team which was slammed by the Consumers' Association rec ently for “bad practice and misselling.”
Inter-Alliance says it only selected recent graduates it felt would make solid IFAs in the long run.
The company says each individual was interviewed and they will be put through a two-year training programme before they are allowed to practice under the Inter-Alliance name.
CFPL was attacked by the CA for not making its direct tie clear to consumers, for lying to potential customers and not disclosing sufficient product information. The company is being investigated by the FSA.
Inter-Alliance chief executive Stuart McGreevy says: “Direct salesforces are fundamentally flawed. Our goal is to find the best of them and convert them to IFAs. We have hired 120 former City Financial staff, the rest have gone to Allied Dunbar and Lighthouse.”
Allied Dunbar spokeswoman Sandra Paul says: “Zurich Financial completely denies these rumours.”