During the course of the last two or three weeks we have received communications from insurance companies and finance houses transferring several policies to other agencies which have not been nominated.
In each case we were currently dealing with the client – and had dealt with them for a number of years. We were somewhat surprised to note the transfer of business had been requested.
We contacted the clients, who acknowledged they had been in touch with another salesforce but, as far as they were concerned, had given no such authority.
They were immediately happy to arrange for their policies to come back under our control.
In both cases, it appeared that third-party agencies had been offering some form of free monitoring service. I would be interested to hear if any other advisers have experienced similar problems.
What concerns me is that there is an increasing number of organisations that no longer confirm to the IFA when a client's policy has been transferred.
In such instances, transfers can be taking place without the knowledge of the originating adviser and against the intended wishes of the policyholder/investor.
To me, it does not seem unreasonable that the original holding IFA should be allowed to see the letter of authority signed by the client.
Emery-Little Financial Services,