View more on these topics

Clients were told IFA firm had gone bust rather than network

An adviser has slammed Phoenix Independent Advisers for sending a letter to some of his clients last November that claimed his firm had gone into administration.

Abacus Assurance Financial Services managing director Philip Vaughan says PIA sent a letter last November to at least three of his clients invested in a Friends Provident investment bond, claiming it had bought the assets of his company.

However it was Vaughan’s former network Interlink Premier Network Limited that was placed into administration in 2004 with assets subsequently acquired by PIA.

Vaughan says when he challenged PIA on the letter, the firm said that when it acquires the assets of a company in liquidation or administration, it is dependent on the product provider, in this case Friends Provident, to give the names of clients that have not been moved to another agency.

Vaughan says: “The deal allowed PIA access to the client bank but they should not have received my firm’s name and should never have stated to my clients that my firm has gone into administration when it clearly has not.”

A spokesman for Friends Provident says it supplied PIA with historical client records of Abacus for the time it was an AR of Interlink.

He says: “In 2008, Phoenix wrote to us asking us to transfer any business under Interlink, which would have included any Abacus business as an AR of Interlink. The transfer was completed in August 2009. At this point, Phoenix was able to access details of all clients of Abacus for the period in which it had been an AR of Interlink.

“They were, and are still entitled, to get information on the ex-Interlink business written by Abacus as they still own that and so could, at any time, request this through the extranet.”

A spokesman for PIA says: “We want to make it absolutely clear that in this case contact with the three Abacus clients by our adviser should not have taken place.

“We have written to Abacus and to the clients to apologise and are reviewing our internal procedures to ensure this does not happen again.”


Govt bank sell-off should be in public interest

Virgin Money chief executive Jayne-Anne Gadhia believes any bid for a share of the Government’s stake in the state-backed banks should be subjected to a public interest test to safeguard competition in the market. Giving evidence to the Treasury select committee today as part of its inquiry into competition and choice in banking sector, Gadhia […]

Listed outlook improves

Numis Securities expects share buybacks, tender offers and potential wind-ups to produce a better outcome for listed fund of hedge fund investors in 2011.


Ad drive wanted to boost poor FTB credit scores

Mortgage experts are calling for the Government and the FSA to set up a national ad campaign to help first-time buyers increase their chances of getting a mortgage. Last week, PMS executive chairman John Malone told Money Marketing that credit-score criteria punishes FTBs, who often do not have a credit card, change address regularly and […]

EU staff pension review one step closer

The European Union’s Economic and Monetary Affairs Committee has backed a call for a review of EU staff pensions brought forward by Conservative MEP Vicky Ford. The Economic and Monetary Affairs committee voted through a pensions green paper, Towards adequate, sustainable and safe European pensions systems, this morning, including an amendment which says the committee […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. And they are paying damages for “Passing Off” and/or libel/slander? (They would be if they’d done it to my company!)

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm