Aifa has called on the FSA to do “all it can” to fast track authorisation applications from Honister Capital advisers in the wake of the firm entering administration.
Honister entered administration yesterday after it failed to secure professional indemnity insurance. Grant Thornton has been appointed administrator for the group which includes advisory firms Burns Anderson, Sage Financial and Honister Partners.
In a statement issued today, Aifa director of policy Chris Hannant says the regulator should be providing more assistance to ensure a quicker resolution for advisers who are currently “stuck in limbo”.
Hannant says: “The FSA must do all it can to fast track any authorisation applications from adviser firms affected by the administration. At present advisers, and their clients, are stuck in limbo. This is not good for individuals or the reputation on the profession.
“There are, of course, complicated issues involved but the regulator should provide more support and assistance to advisers and ensure all applications are expedited through the provision of additional resource in this area.”
Many advisers have expressed their anger on the Money Marketing website as their trail and pipeline commission has been frozen as a result of Honister entering administration with monthly payments due this week not made.