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By Marc Shoffman | Published Jul 13, 2012

FA week in words (13 July)

That was the view of Clive Waller, managing director of CWC Research after the Lighthouse Group announced plans to de-list from the Alternative Investment Market.

He said: “The return on equity on an IFA firm needs to be about 15 per cent to be successful in being a listed company and I am not sure many are getting near that.”

Mr Waller claimed once the industry had calmed down from the RDR, a viable market could emerge, adding: “We will see a huge aggregation of bigger firms as it will be hard for small firms to do all the research necessary under RDR.

“If you have a market made up of medium-sized firms, you would expect them to attract money.

“If it were not attractive to list, it would tend to mean the market was unattractive.”


Nearly 100 former appointed representatives of Honister Capital are set to join Aegon-owned Positive Solutions this week, its chief executive has claimed.

Peter Coleman said that while the network was not setting any internal targets, it had already received more than 100 phone calls from IFAs.

More than 320 firms and 900 individual appointed representatives were affected after Honister went into administration last week due to its inability to obtain professional indemnity insurance.

The FSA immediately revoked authorisation for all appointed representatives of Sage Financial Services, Honister Partners and Burns Anderson Limited, leaving advisers and thousands of clients unable to carry out financial transactions.

Mr Coleman said in the interests of protecting clients and getting quality advisers on board, Positive Solutions had offered to bring “any and all” on board. He added that the firm had received “almost 100 calls into our head office from from both single appointed representatives and practices with several advisers”.

He said: “Although we have no targets, we would anticipate up to 100 advisers will join us in the course of the coming months.

“We’ve put into action a streamlined induction plan so that when an adviser joins Positive Solutions we will conduct our due diligence to ensure they’re fit and proper and, following this, apply to the FSA for authorisation.”


An offshore IFA has set up a financial fund to help his expatriate clients after they lost all their money when Keydata International failed.

Bert Brown, adviser for British Virgin Islands-based advisory firm Sovereign Offshore, said he and David Stewart, a former distributor of Keydata International products, are building up a fund to support clients in the KSLIT, an action group representing Keydata investors who lost money.

Mr Brown said: “The whole Keydata situation is unsavoury and Sovereign has paid the deposit of 1 per cent for every Sovereign client to participate in the KSLIT legal action, which is under way for the Secure Income Bonds one to three. We have corresponded with KSLIT in terms of our clients invested in the Secure Income Bond 4 to 6 and KSLIT has assured us they are looking into a similar legal action for clients in this investment group too. We stand ready to support the clients in a similar way.”

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