IFAs will not be able to conduct business with several leading fund management companies in less than two weeks time unless they comply with a voluntary initiative aimed at helping providers meet new money-laundering requirements.
This latest revelation comes just a week after Money Marketing exclusively revealed that at least five life offices said they are adopting a similar stance.
The fund firms say unless advisers possess a document called the IFA Certificate, which has been designed jointly by the IMA, the ABI and Aifa, when passing on new business from September 1, they will not accept investment applications.
The fund groups include Aegon Asset Management, Deutsche Asset Manage-ment, Insight, Morley, Gartmore, Gam, Henderson,F&C, Scottish Widows Investment Partnership and HSBC Asset Management.
But Fidelity, Jupiter and SGAM say they have their own systems in place which they hope will be sufficient to comply with the new requirements.
Providers are required to have client information such as copies of passports on file while previously they could accept declarations by IFAs that they had seen documentation verifying an individual's identity.
The certificate is aimed at helping product providers acquire this information without having to go directly to IFAs' customers.
Hargreaves Lansdown money laundering reporting officer Humphrey Turner says: “Our biggest concern is what set out as a voluntary example of best practice is being treated by providers as mandatory.”
IMA head of communications Clare Arber says: “The obligation is getting the verification from the client, not how that verification is achieved.”