Honister Capital administrator Grant Thornton has written to providers threatening to take legal action against firms that facilitate bulk transfers of ex-Honister clients, Money Marketing understands.
Earlier this month, Grant Thornton sold the firm’s recurring and pipeline commissions to corporate IFA firm MacRobins, an appointed representative of Norfolk-based Phoenix Independent Advisers. Advisers are being forced to pay up to 50 per cent of their recurring annual commissions to novate clients to another firm.
MM understands MacRobins is due to make an announcement today which will address bulk transfers, among other issues affecting ex-Honister advisers.
Standard Life and Aviva have insisted they will push ahead with bulk transfers of clients from ex-Honister advisers who have been reauthorised with a new firm. This will mean adviser will not have to pay MacRobins to novate their clients.
It is understood Grant Thornton sent the letters threatening legal action to providers on Friday.
An Aviva spokeswoman says: “We are comunicating with the administrators but we are unable to comment on any specifics at this time.”
A Standard Life spokeswoman says: “We are in communication with Grant Thornton but are unable to comment on the details. We remain committed to supporting the former Honister advisers.”
Last month, Honister Capital, which includes advisory firms Burns Anderson, Sage Financial and Honister Partners and its subsidiary B-A Financial Limited, went into administration after it failed to secure professional indemnity insurance. The group had over 900 self-employed financial advisers and 190 back office staff.