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IFAs attack Cofunds on laundering rules

IFAs have criticised fund supermarket Cofunds after discovering that some clients&#39 Isa applications are being rejected through a quirk in its outsourced anti-money-laundering service.

After lodging seemingly successful Isa applications with Cofunds, some IFAs have found that some clients have subsequently been turned down by Experion because they are not in possession of at least one credit card.

Experion, which is primarily a credit agency, rejects clients on the basis that they do not have enough history on the database to be accepted outright.

As a result, IFAs have to re-apply both with anti-money-laundering forms and further supporting evidence of their clients&#39 identity.

They say this not only neg-ates the point of Cofunds using such a system but dents the goodwill between IFAs, their clients and the supermarket.

Armstrong&#39s Chartered Accountants financial consultant Alex Boyd says: “I feel that the system is flawed and means that in many cases we will have to produce supporting evidence for clients. I can only imagine it is reflecting badly on Cofunds&#39 credibility.”

Cofunds sales and marketing director Rodney Alridge says: “We are trying to reduce the burden on advisers through the Experion checks and we do not believe using this system is any more onerous.”

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