Standard Life to accept bulk transfer agreements
Provider cuts ties to Honister companies, announcing it will accept client transfers without network consent.
Standard Life has ended its relationships with Honister Capital subsidiaries Sage Financial Services and Burns Anderson, and will instead deal directly with advisers to arrange bulk transfers of clients to another FSA-registered firm.
The company also revealed it will accept bulk transfers without requiring consent from the original network or the administrator Grant Thornton.
Honister went into administration earlier this month, after the failed network was unable to obtain premium indemnity insurance.
As a result, 900 advisers have found themselves no longer authorised by the Financial Services Authority.
Providers have responded in a variety of ways, as the FSA offers no concrete rules for conduct in such a situation.
Don Wild, industry relationship director for Standard Life, said: “We’ve two main concerns as a result of Honister going into administration. First is the plight of clients who’ve been left without access to advice from their usual adviser.
“Second is the fact that these 900 advisers have been stopped from providing this advice through no fault of their own.
“Ultimately all clients must be transferred or find new advisers if they are to continue to receive financial advice. We want to make the process of moving with their adviser as easy as possible. We believe that this is in the best interests of treating customers fairly as it will enable advisers to resume their service to them with minimum disruption.”
The provider is allowing 60 days for advisers to contact it regarding the bulk transfer of clients.