An IFA who sold his business to Berkeley Berry Birch is threatening to take legal action for the recovery of a final payment of £80,000 that he claims is owed by BBB.
Huddersfield IFA Alan Mills says he sold FLP Independent Financial Advisers to Professional Financial Solutions which was then bought by BBB in January 2003 in a related deal on the same day.
Mills claims the deal offered an initial payment of £80,000 and the promise of a further £80,000 from BBB, provided that he generated gross commission of £75,000 over the next 12 months. But he says he was dismissed without explanation after 11 months and the final payment has not been made.
He says he has lost his entire business, which comprised three RIs, including himself and two FPC1-qualified support staff. He says he is now being blocked from getting any of the estimated £40,000 a year trail commission and has been told he cannot contact any of his 2,000 former clients.
Mills says: “They have taken my business and got out of paying half of what they owe me. With them still on the acquisition trail, I do not want this to happen to any other IFAs.”
BBB says it was legally entitled to terminate the contract. Financial advisory division chief executive Mike Cleary says: “I am not commenting on why his contract was terminated.”