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Bankhall wrap warning to advisers on client data

‘Intermediaries handing over one of the most valuable parts of their business to a third party’

Bankhall says there is no benefit in joining a network because they offer advisers no protection from liabilities arising from complaints against them.

The firm says it is concerned that many advisers believe joining a network protects appointed representatives from regulatory and financial liability in case of complaints.

Marketing director Richard Howells says: “What is the benefit of joining a network if the financial liability is passed back to the individual adviser? People join networks for protection against that liability. The network principal gets a slap on the wrist from the regulator but, in terms of cost, it falls to the individual.”

But both Falcon and Burns-Anderson say networks do add value by mitigating business risk which reduces the likelihood of complaints.

Falcon chief executive Allan Rosengren says: “Of the 15- odd networks out there, some are more hands-on than others. Their role is to add ano- ther layer of protection by risk-managing every piece of business. Although the network is ultimately responsible for the action of its ARs, within a contract, if there is the need for a settlement, it would be settled by the individual, not the network.”

Burns-Anderson head of marketing Adrian Lewis says: “We do have clauses written into individual member contracts and they are ultimately responsible for the advice they give. However, we pride ourselves on the guidance that we give to avoid complaints coming back to our advisers in the first place.”


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Insight bucks trend in move out of Nurs

Insight Investment is bucking the industry trend by converting its diversified target return fund from a non-Ucits retail scheme structure to Ucits III next month. Most multi-managers have been converting their funds from Ucits III to Nurs to access the greater investment flexibility that enables. But Insight says Nurs funds require life insurance companies to […]

Excuses, excuses

Imagine you were an IFA firm operating under FSA regulation. Imagine that in the past the firm had been several firms operating under several different regimes. A reasonable merger had taken place although for a few years the firms existed as a sort of ad hoc alliance before a full merger.


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