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Flood of IFA complaints at Cofunds admin errors

IFA fund supermarket Cofunds has had a barrage of complaints after a chain of recent admin blunders have left IFAs misinformed and out of pocket.

The platform, launched in January, has more than 1,500 registered IFA users and has taken more than£100m in Isa business.

Cofunds says the very high levels of business taken this Isa season inevitably lead to some problems. However, complaints from IFAs have included commission paid to the wrong network, inaccurate client contract notes and inc-omplete product literature.

DBS member Hadleigh Financial Services principal Gary Butcher says his commission was paid to the M&E Network and he was told he would not be paid until Cofunds had retrieved the commission from M&E. Butcher says he made a string of phone calls to remedy the blunder and was assured his commission had been refunded. In a letter to Money Marketing, he said: “This company is a nightmare to deal with and I will avoid them like the plague in future.”

Other bigger IFAs – including Willis National, Garrison Investment Analysis and Chelsea Financial Services – say they experienced a number of admin hitches earlier this year but have recently seen an improvement.

Garrison director Colin Campbell says: “It is my impression that the admin has improved dramatically. We are still getting the occasional error but it is by no means the level we had before. As one of Cofunds&#39 larger users, we have now been assigned our own member of staff to deal with our problems.”

Cofunds chief executive Sam Jensen says: “We are running about a 3 per cent error rate now, which is down significantly since we launched. We did have an unfortunate occurrence with Gary and we feel terrible about it.”

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