View more on these topics

Now IFAs face laundry lockout from fund firms

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&#39s identity.

The certificate is aimed at helping product providers acquire this information without having to go directly to IFAs&#39 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.”

Recommended

Chartwell publishes income guide

Chartwell Direct is offering a service, Incomeline, which provides consumers with information and risk ratings on income-producing vehicles. Investors who need to generate a regular income can receive an information booklet which details various income investments including National Savings and Investments products, bank and building society accounts and corporate bond fund investments, as well as […]

Plan for cooling-off period on remortgages scrapped

The FSA has abandoned the idea of introducing a cooling-off period for remortgages after the industry said it did not make sense in the mortgage market. In feedback to CP98, the Draft Mortgage Source-book, the regulator said it was scrapping its plans. The industry said there is no justification for a cooling-off period because consumers […]

&#39Line being drawn under dual-pricing complaints&#39

Halifax and Cheltenham & Gloucester say the Financial Ombudsman&#39s rejection of complaints about their dual-pricing policies shows the arbitrator is trying to draw a line in the sand for future complaints. Last week, the ombudsman threw out a case of a couple tied to C&G&#39s standard variable rate of 7.25 per cent who applied to […]

Berkeley Alexander has new approach to PMI

BERKELEY ALEXANDER hospitalCARE Type: Private medical insurance Minimum-maximum ages: 18-64 Maximum benefit: Section one – £5,000, section two – £10,000, section three – £5,000, section four – £5,000, section five – £1,500 Cover provided: Section one – Angioplasty, cartilage operation, dental work, ears, eyes, nose, throat, duodenal, peptic or gastric ulcers, gall bladder, hernias, haemorrhoids […]

Neptune India: three stocks we’re buying & the one we’re not

By Kunal Desai, Head of Indian Equities The Neptune India Fund’s investment process serves as a key differentiating feature of the portfolio versus its peers, contributing to its significant outperformance under Manager Kunal Desai’s tenure. Focusing on industry disruption, accounting quality, liquidity and corporate governance, Kunal sets out three stocks that he’s buying in the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment