A law firm representing members of Alpha 2 Omega has raised concerns that administrators are trying to “pre-pack” A2O advisers and their client assets to sell on to another IFA firm.
Regulatory Legal, which represents 26 appointed representative firms within the network, says administrator Benedict MacKenzie is looking to sell the members and their client assets.
Last week, Money Marketing revealed that A2O had gone into administration. Earlier in the month, the FSA suspended A2O from all regulated activities due to concerns over its compliance arrangements.
Regulatory Legal partner Gareth Fatchett says: “Network members see their businesses and clients as their own. The attempt by the network administrators to seek to sell the clients, agencies and assets is very concerning.
“Commission is not being paid at the moment to appointed reps I am representing and what we want is for the commission to be open and paid and the option to leave the firm if they wish, without their assets being sold on.”
Benedict MacKenzie was unavailable for comment.