An introducer at the heart of the British Steel fiasco has been criticised for having access to the financial details of an adviser’s client when it had no right to do so.
According to a document seen by Money Marketing, Celtic Wealth Management had access to the financial details of a British Steel Pension Scheme member. This member transferred out of the British Steel scheme into an Intelligent Money Sipp and was advised by Active Wealth, which has now gone into liquidation.
As a regulated adviser, Active Wealth had the right to legitimately request the member or client details from Intelligent Money and did so.
But these details were then passed over to Celtic Wealth for client distribution without Intelligent Money’s knowledge by Active Wealth.
Active Wealth told the client he could only get financial statements from Celtic Wealth, which had no connection to Intelligent Money and no right to have these documents.
The document seen by Money Marketing shows Celtic Wealth had access to details of client holdings in certain funds.
Celtic Wealth did not reply to repeated requests for comment to explain why, as an unregulated introducer, it needed to communicate directly with an adviser’s client, why it needed to hold financial details of an adviser’s client and if it communicated directly with clients of all adviser partner firms.
Intelligent Money chief executive Julian Penniston-Hill says: “The British Steel saga] stems from the creation of the funds that enabled the payment of marketing fees to any non-regulated introducer.
“It created the opportunity for pensions misselling through legitimate products, in this case open-ended investment companies. These products created the money pot for rogue IFAs to garner leads from unregulated firms receiving such marketing fees, to put it bluntly.”