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Home > Your Industry > Technology for Advisers

By Joy Dunbar | Published May 28, 2009

Dunstan Thomas warns of potential TCF failures

Christopher Read, chairman of pensions software company Dunstan Thomas, said advisers should be cautious about the way they transfer their clients onto a wrap platform

He said the regulator underlined concerns around customer migration strategies of adviser firms.

Mr Read said: "The survey indicates that 71 per cent of IFAs may be in breach of treating customers fairly by selecting specific groups of customers to migrate to wrap rather than explaining the pros and cons of wrap to all customers and helping them to make the right decision for them."

He said a comment on this issue made by the FSA had underlined concern about customer migration strategies of adviser firms.

It said: "If advisers do not offer wrap when it is considered to be suitable, that may call into question the suitability of their recommendation."

One of the reasons for some advisers only transferring new clients into wraps may be to do with the burden of transfer existing assets onto the platforms, Mr Read said.

John Donaldson, an IFA of Southampton-based Positive Solutions, said if an adviser was moving existing clients to a wrap then they had to ensure it was suitable for them.

He said: "Within our business and our proposition we move our new and existing clients to wrap if it is suitable. I cannot comment on other IFAs."

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