View more on these topics

Helm Godfrey clashes with Selestia in legacy fund row

Helm Godfrey is trying to haul £4m off Selestia and threatening legal action if it refuses to re-register its clients’ Isa and Pep holdings off the platform.

The bitter row started after US investment house Dimensional Fund Advisors wanted Selestia to keep its £20m funds on the platform but close them to new money.

Selestia says it only wants funds open to new money on the platform because it does not want to build up legacy pots of assets. Marketing director Bill Vasilieff adds that Selestia built special systems to accommodate DFA’s unique pricing structure.

Helm Godfrey is a keen supporter of Dimensional, with £4m invested in the funds, and managing director Bruce Wilson says it is “outrageous” that Selestia will not offer in specie transfers off the platform for Pep and Isa holdings.

This means that clients will have to cash in holdings, transfer the tax wrapper to another platform and then reinvest. They will not lose their tax allowances but Wilson has criticised Selestia for only giving two months’ notice.

Selestia is offering free switches to other funds and in specie transfers on unwrapped holdings but will automatically encash any holdings, including pension investments, unless instructed otherwise, by the end of July.

Wilson says: “Even though they will not lose their tax status, they will be out of the market, face possible dilution levies and it is an outrage. We are taking legal advice and will be speaking to the FSA.”

Vasilieff says: “Dimensional created this problem, not us. We went out of our way to accommodate them but do not want to build up legacy pots.”

Dimensional head of financial adviser services Sam Adams says: “We wanted to leave our legacy assets there and it is Selestia’s requirement that they move, not ours, but we understand their position.”


Altmann welcomes Lords vote

Pensions consultant Ros Altmann has welcomed this week’s House of Lords vote on the Pensions Bill, saying victims now look more likely to be eligible for 90 per cent minimum protection.

Burns-Anderson IFA opens Cardiff office

Burns-Anderson has opened a new Cardiff office to support its growing IFA division. The IFA was set up in October 2005 under Nick Scarrett to provide support to its network members in providing holistic financial advice for their clients.The office will specialise in high net worth clients and will be run by husband and wife […]

Benefit boost for income protection

LV= has revamped its income protection product by increasing maximum benefits by over 80 per cent to 150,000.It has also removed the only remaining standard exclusion across its IP range in a move which it claims makes it the first provider in the intermediary market to have no standard exclusions on life insurance, critical-illness cover […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm