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Dual strategies to recover Millfield advisers’ £5m debts

The 1,000 former Millfield advisers that owe the firm over £5m from advance commission paid will be split into two different classes.

Former Millfield advisers that joined Bates Millfield will receive help, with the firm having agreed to pay off advisers’ debts up front and let them pay back on a monthly basis.

Advisers that left Millfield before The Money Portal acquired the rump of the business face being chased by administrators PricewaterhouseCoopers and having to potentially pay their liabilities in one go or face legal action.

PWC is chasing outstanding debt from ex-advisers, which it says range from small sums to tens of thousands of pounds.

Joint administrator Mike Jervis says some of the advisers built up debts by borrowing to set up their firms while others were paid commission that has not been clawed back.

He says: “We have legal mediations going on with advisers that owe money.”

TMP group head of distribution Alan Easter says: “PwC will come down harder on advisers that left before the merger.”

Jervis says Millfield is facing 400 misselling claims rather than the 20 expected, with most concerning pensions. He adds: “We were surprised about the number of misselling claims. It seems whenever a company goes into insolvency it encourages other claimants to come forward.”

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