Benedict Mackenzie joint administrator Simon Underwood says that despite interest from a number of parties they have failed to reach a successful conclusion due to concerns over the transfer of liabilities and confidentiality issues under the Data Protection Act.
Underwood says that since his appointment numerous advisers have tendered their resignation from the network with many looking to alternative networks or seeking FSA authorisation.
A20 was placed into administration late last month. North East IFA Moneygate was believed to be frontrunner for the business only to revise its bid downwards, a third was placed on the table late last week.
In an adviser update, Underwood says: “One of the focuses of the FSA has been that the administrators protect the position of all clients of A2O and it was anticipated that a sale of the network would have assisted with this objective.
“In the circumstances I now require all client files to be held to my order. Client files will be required by the administrators – and/or the Financial Services Compensation Scheme, if appropriate – in the event claims are received relating to business conducted by Advisers when appointed to A2O (including current known claims, and claims received in the future). I shall be circulating further details and an undertaking for you to complete and return to me in the near future.
“As regards commission payments, I am taking legal advice and hope to be able to revert to you regarding the position towards the end of next week with further news. In the meantime I am unable to make any payments from the commission account.”