Ashley Law has withdrawn two ads after a complaint from an IFA over the status of membership was upheld by the Advertising Standards Authority.
Ned Naylor, of IFA Ned Naylor & Co, objected to ads from Ashley Law which promised “guaranteed client ownership” for IFAs.
Naylor says client ownership at Ashley Law is not guaranteed as, when advisers decide to leave the com-pany or have their franchise agreement termin-ated, they lose all their accrued income and are unable to transfer or sell their franchise businesses.
Ashley Law says if there are concerns as to whether the departing licensee is fit and proper according to FSA standards it would be inappropriate to endorse the transfer of client ownership.
Naylor has now referred the matter to the Office of Fair Trading and says he will be raising it with the FSA.
The OFT says it is considering the matter and will issue a substantive reply to Naylor's objection in due course.
Naylor says: “This firm and its thoroughly bogus advertising needs to be exposed. It is clear Ashley Law has misrepresented the franchise agreement's terms in their recruiting literature and advertisements.”
Ashley Law managing director Jock Cassidy says: “It is regrettable that the ASA has reached such a conclusion but I fully accept that under their remit they are correct to do so.”