Reyker Securities has been accused of soliciting advisers’ clients after contacting advised clients directly to promote its non-advised services.
Reyker has come under fire since it took over as custodian following the collapse of structured products firm Merchant Capital in 2012.
It initally charged clients between £15 and £25 per investment to receive delayed income payments when it took over as custodian. After becoming plan manager and custodian for Merchant Capital investors last year, it emerged around 12,000 clients would face hundreds of thousands of pounds in additional charges.
Now advisers say the firm is communicating with advised clients to encourage them to invest directly.
Maxima Financial Management director Phil Sipocz says one of his clients recently received a phone call from Reyker, attempting to persuade her to reinvest with them after she requested her money be returned at maturity.
He says: “The client received her capital back of £10,000 minus a maturity fee of £257.
“Having met with the client we decided to do something else with the money, so sent Reyker clear instructions to return it to her bank account.
“The client was then most annoyed to receive a phone call from Reyker trying to persuade her to reinvest the money with them, having had the audacity to take a completely unwarranted fee. This is a deliberate attempt to undermine advisers and directly solicit their clients.”
Money Marketing has also seen a number of emails and letters from Reyker to advised clients which promote its non-advised services.
Lowes Financial Management managing director Ian Lowes says: “We have seen a number of instances where Reyker has made it clear that it is keen to further its direct relationship with the client in respect of re-investment of maturity proceeds and other services it offers.
“It is understandable that Reyker would want clients to deal with it directly as its relationship with many advisers has been somewhat strained over charges and some administrative issues.”
Money Marketing understands Reyker’s position is that it reserves the right to contact clients. Reyker declined to comment.
Sipocz says: “This is further evidence of Reyker’s poor attitude – they appear to regard all advised clients as fair game.”