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FSA must ‘do all it can’ to assist former Honister advisers

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.”

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Paul Heathcote 12th July 2012 at 9:10 am

    Why should the FSA queue jump these advisers? Its all very unforetunate for them, but if you have other advisers in the normal FSA process for authorisation having their applications delayed so that the Honister advisers can jump the queue, that is simply not fair. Maybe the people who were in charge of Honister should me made to pay for extra FSA resources to speed up the process without affecting other advisers, that would make sense.

  2. Julian Stevens 12th July 2012 at 9:36 am

    Without comment from the FSA as to whether or not it intends to take any notice of these calls for assistance, this is hardly much of a story.

    I can understand why the FSA might have reservations about allowing advisers to move from one firm to another without undergoing at least some sort of fresh checking process. But to deny fast-track re-authorisation for those who’ve found themselves cast adrift through no fault of their own (assuming that’s the stance it decides to take) seems particularly officious and heartless. After all, we’re talking here about peoples’ livelihoods and the proper interests of their clients.

    Why not, as has already been suggested, allow provisional re-authorisation whilst the normal process runs its course? Where would be the harm in that?

    This could be a chance for the FSA to show that it’s prepared to take a pragmatic view and actually help advisers rather than sticking rigidly to standard timescales which for many may well be so long that they’ll be forced to throw in the towel. But, as we see so often, the FSA is a law unto its own self and does whatever it wants at whatever pace it fancies. A great shame.

  3. Amongst the tosh written about the Honister debacle this is high up on the self-serving comments. Let’s remember that Honister failed for many reasons and not all of it down to the appalling management. There is a major past business review going on there which has soaked up millions in cash – now it wasn’t the management who gave that advice.

  4. For adviser’s who find themselves in this ‘forced’ position, negative comments only compound the anguish they will be experiencing, where is the compassion from fellow professionals? Not all those experiencing this situation should be tarnished with such assumptions of being culpable for these issues.

  5. Unless each application is treated on its own merits how is it possible for the FSA to review and approve only those who deserve it?

    If this takes time it takes time, let’s be honest if you were squeaky clean and worked at firm who were a bit iffy you’d look around and walk.

    Therefore by default it could be said that those stayed obviously like the churning culture.

  6. i find some of the comments on here outrageos from so called colleagues in the indusry , most of the advisers at Honister started life with other firms and were consiquently taken over due to inadequate cap add or directors borrowing more than they could afford , out of 900 advisers the amount deemed high risk is less than 10 % the other 90% are hard working family supporting people who have just had there ability to support their families removed through no fault of their own . We are not asking to queue jump or for any favours just our auhorisation back so we can support our famlies and sevice our clients , for those like me in the queue since earlier in the year waiting on DA authorisation its frustratng and for the advsers out there who are crrently authorised and earning and able to have an income at least you have the ability to do that . As an industry its time we came togeher and supported each other a little bt more when it comes to the FSA , not lay blame and critise those currently experiencing high levels of personal worry , lets face it non of no whats round the corner and if the adinistrators ever close you down maybe you woudnt sit in ivory towers

  7. I love how the high and mighty come out to chastise those advisers who have been restricted from earning a living and tarnished them all with the brush used to paint the minority of advisers within Honister.

    There was very little in the way of correspondence within the network relating to compliance issues so how are we as advisers supposed to know that other ones are trying it on.

    As suggested, there should be a provisional reauthorisation pending individual reviews of advisers. Not holding any hopes….

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