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Ex-Honister IFA anger over James Hay ‘change your adviser’ letter

An ex-Honister adviser has hit out at James Hay after the firm contacted his client directly offering the opportunity to appoint a new financial adviser.

A letter sent to a client of Allen Charlton IFA Gareth Nelson, seen by Money Marketing, states Honister has gone into administration. It says the client could wait for Nelson to be reauthorised or could find another adviser and included a form to appoint 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 meantime, 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 is going behind our backs and asking clients if they want a new financial adviser. It is absolutely disgusting.”

Nelson says Sippcentre contacted him to say it would be writing to his clients informing them of Honister’s administration but 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, 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.

Honister entered administration this month after failing to secure professional indemnity cover, leaving 900 advisers unable to give authorised advice.

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