Honister IFAs in client data concern
Back office system used as client database fields 250 calls from worried Honister IFAs, chief executive reveals.
Back office systems provider Intelliflo has set up a helpline for advisers of failed network Honister, after it fielded around 250 calls from worried IFAs that use the system to manage their client database and email records.
Nick Eatock, chief executive at online management solutions provider Intelliflo, told FTAdviser that is has fielded 250 calls from worried advisers following Honister entering administration yesterday (3 July) and he expects this number will increase.
According to John Winful of Winful Associates, an IFA firm that is an appointed representative of Honister, the concern is due to the fact that Honister advisers were “encouraged” to use the Intelliflo system as a client database as well as to manage emails.
Mr Winful said that he is currently able to access the system, but that he has heard from several others that they have been unable to gain access.
He added that Intelliflo have been incredibly helpful in the advice they have provided; “far more helpful than the firm I used to pay a lot of money to”.
Mr Eatock said: “We have been inundated with calls from Honister advisers who used our system under the Honister banner.
“We are helping them through an unnerving process. The re-authorisation process is achievable [without help] but it depends on your own timeframes.
“There are great networks out there like Sense and Lighthouse and they can help accelerate it to take six weeks for the re-authorisation process so advisers are then back on the route.”
A spokesperson for Sense Network confirmed to FTAdviser that it has received a number of calls from Honister IFAs.
The spokesperson said: “Sense are working quite hard and have brought in extra resources to have the capacity to deal with these people.”
However, the firm urges advisers to beat the queue by getting a reference as soon as possible as “this could be a potential issue”.
The spokesperson added that Sense anticipates authorisation taking four to six weeks “if it is clean, quick and simple.” He also highlighted that rather than not doing anything, it is imperative for advisers to stay in contact with clients and reassure them of the situation.
The Association of IFAs have also released a statement urging the regulator to fast-track authorisation of Honister IFAs.
Chris Hannant, director of policy at Aifa, said: “The FSA must do all it can to fast track any authorisation applications from adviser firms affected by the administration. At present advisers, and their clients, are stuck in limbo.
“This is not good for individuals or the reputation of the profession. There are, of course, complicated issues involved but the regulator should provide more support and assistance to advisers and ensure all applications are expedited through the provision of additional resource in this area.”