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Large firms line up to offer home to ex-Honister advisers

Large distribution firms are lining up to offer ex-Honister advisers a route back into the industry following this week’s administration.

Honister entered administration on Tuesday leaving around 900 advisers unable to trade and with a wait of up to six months to gain reauthorisation.

Advisers expressed their anger on the Money Marketing site earlier this week at being left unable to advise and with any pipeline and trail becoming an asset for administration purposes. Monthly trail commission payments due on Monday were not made and the administrators will not be accepting bulk novations of clients to new principals, meaning advisers will have to get individual client servicing letters to allow the continued payment of trail to their new firm.

Money Marketing understands the FSA refused a bulk transfer of advisers to a network last week due to concerns over liabilities and RDR readiness.

2Plan says advisers who are looking to join can become part of its national arm initially as registered individuals and once they have completed this process can apply to become an AR firm in its network.

2Plan chief executive Chris Smallwood says: “Advisers can join as an Ri of 2Plan or set up an AR firm. If we are happy with the adviser file and submit the Form A to the FSA for authorisation, and the FSA are happy with the adviser, we have often appointed within hours of submission.”

Tenet is offering Honister advisers non-repayable funding, dependent on production levels, and hardship loans, subject to status. Tenet says it will be helping AR firms who want to join alongside those wanting to become an RI with an existing Tenet member. It is holding seminars across the country, including Walsall and Cardiff this afternoon and Livingston and Belfast on Monday.

SimplyBiz is setting up a directory of firms willing to take on Honister advisers on a temporary or ongoing basis.

Sesame and Positive Solutions also say they will be putting steps in place to help advisers.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. We're all doomed!!!! 6th July 2012 at 9:32 am

    Whilst it is admirable that Chris Smallwood has stated that his organisation have often appointed within hours of submission, the key part of his piece is “and the FSA are happy with the adviser”.

    The problem is that the FSA are likely to view all Honister advisers in the same way – they come from an organisation that could not effect PI Insurance, presumably due to the quality of business written historically.

    This is not dissimilar from the issues that surrounded the former Park Row advisers, many of whom were not authorised for over a year – due to no fault of their own.

    This is set to rumble on……….

  2. ex Honister staff 6th July 2012 at 10:36 am

    The advisers should choose their network carefully AND the network should choose their advisers just as carefully.

  3. Given some of the networks above are offering an “incentive” for members to recommend them to Honister IFAs they need to be careful.

    Positive Solutions have just offered up to £1,500 worth of “Secret Escapes” holiday vouchers to members for each successful referral – but of course being Positive Solutions its not quite £1,500 when you see the detail.

    My only advice would be to start by asking each Network they speak to about adviser retention rates as nothing shines through the promises more than how happy the current members are

  4. Peter Wiliams 6th July 2012 at 6:43 pm

    Tenet and Pos Solutions probably look at this as a means to an end as they are both loss making firms losing advisers that need new blood.

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