Distribution bosses are calling for the FSA to “do something positive” for advisers by fast-tracking former Honister Capital advisers’ applications for reauthorisation.
Last week, Money Marketing revealed Honister Capital had entered administration after the firm failed to secure professional indemnity insurance. Grant Thornton was appointed administrator and the firm’s 900 advisers were made redundant with immediate effect and prevented from trading.
The FSA’s guidance says it takes up to six months to gain reauthorisation from the time an application is submitted.
Tenet distribution and development director Keith Richards (pictured) says: “I would hope it is incumbent on the FSA to apply more resources from different parts of the organisation to get these advisers up and running as soon as possible.
“The regulator can be proactive and gain some credibility for doing something positive for the industry.”
Sense Network commercial director Steve Young says: “Once firms and advisers have carried out the right due diligence and ensured the firm they are joining is appropriate for them, the regulator should look to ensure the reauthorisation process happens as quickly as possible.”
Last week, Aifa called on the FSA to do “all it can” to fast-track authorisation applications for Honister advisers.
Aifa director of policy Chris Hannant says: “Advisers and their clients are stuck in limbo. The FSA must do all it can to fast-track applications from affected adviser firms.”