An ex-Honister adviser has hit out at James Hay after the firm contacted his client directly offering them the opportunity to appoint a new financial adviser.
A letter sent to a client of Allen Charlton IFA Gareth Nelson stated Honister had gone into administration. It said the client could wait for Nelson to be reauthorised or could find another adviser and included a form for clients to apply for a new adviser.
The letter says: “If you would like to appoint a new FSA authorised financial adviser please complete and return the enclosed Appointment of Financial Adviser Form. In the mean time, we will correspond with you directly and accept instructions from you directly.”
Nelson says: “We are on our knees and providers such as James Hay are going behind our backs and asking clients if they want a new financial adviser. It Is absolutely disgusting.”
Nelson added Sippcentre had contacted him to say it would be writing to his clients informing them of Honister entering administration but had refrained from doing so upon his request.
James Hay Partnership managing director Tim Sargisson says: “We are hugely sympathetic to the position that ex-Honister advisers find themselves in and we hope that the situation is quickly resolved.
“However, providers are required, and are under a duty of care, to send clients all the information they need at this time to ensure they understand our position, how we can continue to deal with these clients and to ensure that clients are not left without financial advice longer than necessary.
“The information we have sent was intended to speed up the process of enabling clients to either stay with their current adviser, once they were re-registered, or choose another adviser if they wished.”
Separately, Cofunds says it has today reinstated client account access after discussions with administrators Grant Thornton.
The platform says it had to block account access to Honister clients via the platform when removing adviser permissions, leaving clients unable to access account information.
Honister entered administration two weeks ago after failing to secure professional indemnity cover, leaving 900 advisers unable to give authorised advice.