Standard Life rejects claim it ‘automatically’ removed IFA

An IFA at the centre of recent claims of poaching in relation to Standard Life has accused the firm of “automatically” removing him as a client’s listed IFA after the individual since confirmed that they did not request a change of adviser.

Andy Gibson, director at Hertfordshire-based HCF Partnership, has previously contacted Standard Life claiming it appeared to be poaching customers after he received letters telling him that a new adviser has been appointed for three individuals.

Mr Gibson has since investigated the latter further and has said that one of the clients concerned denied that he requested Standard Life remove HCF Partnership as an agent and that he wants to reinstate the adviser firm.

He added that the undesired change may have occurred due to the fact that HCF’s client base is made up of customers of “several different firms” and that many may clients not “recognise the name” shown it by the insurer.

Mr Gibson said he believes that the case shows that Standard Life’s approach may be designed to “automatically remove” adviser details if clients say they do not know who their adviser it or that the adviser hasn’t been in touch for a while.

Standard Life has denied poaching and has said that it does not automatically remove advisers.

The firm told FTAdviser that it would not remove adviser details even if the client tells them that their IFA has not been in touch for a while or if they are unsure who their IFA is.

A spokesperson for Standard Life said: “We tell the customer who their adviser is. We would only remove if the customer tells us they are no longer using the IFA.”

Mr Gibson said: “Our client base is made up of clients of several different firms and some clients do not recognise the name.

“However we have bought and paid for these clients and do not agree that Standard Life have the right to remove us unless the client has specifically written in appointing a new adviser.”

Advisers have previously raised concerns over the nature of Standard Life communications with clients, as often they are sent out without the knowledge of the adviser.

Several advisers complained about one such letter that was sent in December, which contained a questionnaire that offered a tick-box option to remove an adviser from their records. Clients were offered an iPad 2 for completing the survey.

Standard Life said that the forms were part of an exercise to update records and that they were in line with Financial Services Authority’s Treating Customers Fairly principles.

A spokesperson said at the time: “Under the FSA’s TCF guidelines Standard Life’s product provider responsibilities are to provide customers with clear information and to keep them appropriately informed before, during and after the point of sale.

“This is an exercise in checking the accuracy of customer records and therefore this information needs to come from the customer.”