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Networks continue to sign up ex-Honister advisers

Openwork and Tenet have taken on over 200 former Honister advisers over the last three weeks.

Following Honister entering administration, around 900 advisers were left unable to give authorised advice.

Openwork says it has taken on 45 ex-Honister advisers and is expecting more to join over the coming weeks.

Openwork proposition and marketing director Philip Martin says the firm has turned down 15 due to concerns over meeting RDR qualification deadlines or other quality issues.

He says: “Our recruitment policy is about quality not quantity and the fact we have rejected one application for every three we have accepted reinforces that.”

Tenet says it has around 170 advisers going through the induction process.

Distribution and development director Keith Richards says: “We have 170 advisers going through the process of induction at the moment and are looking to get these guys up and running as soon as possible.”

Positive Solutions says up to 100 former Honister advisers could join the firm.

A PosSol spokesman says: “Discussions are ongoing with around 100 advisers who had initially expressed an interest in signing up to Positive Solutions and the recruitment and re-registration process is under way for some of those.”

SimplyBiz joint managing director Matt Timmins says: “We have had over 100 enquiries and close to 80 individual meetings booked. Over 50 per cent of these firms are looking for a short term solution under an appointed representative or registered individual model before moving to direct authorisation. Nearly all of the firms are looking to go direct over the medium to long term.”

An Intrinsic spokesman says it has had 50 applications from ex-Honisoter advisers while Sense network says it will take on a maximum of 65.

Lighthouse and Sesame refused to disclose how many former Honister advisers they were looking to take on.

Last week, Aviva and Standard Life both committed to accepting bulk transfer requests from advisers waiting to be reauthorised by a new firm or network.

nhance Independent Financial Advisers director Peter Flowers says: “I think the guys who are looking to become appointed representatives will obviously be able to get authorised reasonably quickly. The advisers who want to go directly authorised will find themselves with a longer wait.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. “Taking on” advisers is one thing. Actually obtaining re-authorisation to trade will be quite another, given that the FSA has said little if anything about providing a fast-track through its normal approvals process. Its standard timescale appears to be anything up to 6 months. No business of any size or type can survive such a period of enforced prohibition from trading with no income.

    Such a prohibition constitutes a blanket assumption on the part of the FSA, without apparent justification, of unfitness to trade, if only temporarily (which could well be for many months). What crimes are these people assumed to have committed that would render them unfit for swift re-authorisation?

    In the absence of any evidence (or at least published evidence) to support such an automatic prohibition, such a ruling appears to be patently unjust. The businesses and livelihoods of those affected by Honister’s collapse could well founder irretrievably whilst the FSA plods doggedly through its standard bureacratic nit-picking procedures for reauthorisation. Even if the FSA remains insistent that due process must be followed (despite representations arguing for clemency), why can’t these people be granted provisional, interim re-authorisation so they can at least continue to trade unless or until any evidence is forthcoming that they shouldn’t be permitted to do so?

    Wouldn’t that constitute a reasonable way forward as an alternative to what may well happen?

    Then again, this is the all-powerful and unaccountable FSA, not a normal organisation that exercises reasonable regard for other peoples’ livelihoods and businesses. Once again, if we had an Independent Regulatory Oversight Committee, it would (hopefully) have the unassailable authority to direct the FSA to take a pragmatic approach, buck up its ideas and get the innocent victims of Honister’s collapse back in business with an absolute minimum of delay. Wouldn’t that be a good thing for everyone? I repeat: In the absence of any firm evidence to the contrary, the FSA should not assume automatically that these people are unfit for swift re-authorisation.

  2. Malcolm Everest 27th July 2012 at 11:53 am

    It’s not very often I will defend the FSA but they have been true to their word for me personally.

    I probably have Sesame to thank for walking me through page by page the information that the FSA would look for on their application forms so that they would have all the information they would need but it still only took 12 working days from my first contact with Sesame to me being up and running again with both my AR firm and me as an individual authorised.

    I feared months and months of not being able to trade when Honister went into administration but I am very grateful to Sesame and the FSA for re-authorising me so efficiently.

  3. Here’s hoping the rest of us can get reauthorised fairly quickly too…..

  4. Malcolm Everest 27th July 2012 at 1:18 pm

    I hope so James.

    Ask whichever network you are applying to join to run through the forms with you in great depth (my contact at my new network spent from 8pm til 10pm on the phone one evening going through every page) and ensure the FSA have all the information they need without having to come back and ask questions.

  5. I wholeheartedly agree will the comments above by julian Stevens which is the stance I wish the fsa had taken.

    That said, like Malcolm I am also fully authorised as an individual, after the hard work by beaufort asset mamangement in making sure my application was accurately filled in and the cleanness of my compliance record.

    I have personally seen all the clients 126, whom we wanted to stay with us and have signed over 1000 individual letter of authorities, that are now being processed. I hope other advisers will very soon be back working and can save their businesses.

  6. I have checked the register for malcolm everest and it still states that you are with Sage! is there something you know that we don’t?

  7. Sorry malcolm you are right, i can see them both after looikg carefully!

    How long did it take you, from start to finish?

  8. I went over to Sesame and the forms went up to the FSA back in July and I’m still waiting for authorisation – Useless !!!

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