The retired founding director of Berry Birch & Noble Financial Services is concerned that Berkeley Berry Birch's decision to dump the firm's liabilities on the Financial Services Compensation Scheme will tarnish his reputation.
BBN founder Derek Berry is joined by network giant Sesame in criticism of the FSA for approving the transfer of 150 advisers and their clients to a phoenix company within BBB, foisting the cost of potential misselling liabilities on to the FSCS.
Berry also questions providers, including Friends Provident, Clerical Medical, Norwich Union, Scottish Widows and Skandia, which have stakes in BBB, for wanting to get involved with a company engaging in these practices.
He says: “I am shattered that a company with such a reputation should take such action. The stigma will make the firm's name stink and I am concerned my name is still in the title.”
Sesame marketing director Martin Davis says: “If BBB are allowed to get away with it, what is to stop everybody else following suit? This is a poor show and the FSA should do more to stop it happening.”
FSA spokeswoman Louise Buckley says: “This issue comes under corporate and insolvency law so it is not our remit. Where there is a blatant disregard for legal standards, we can take action through the courts, for example, if asset-stripping appears to have taken place.”
Berkeley Berry Birch would not comment.