True Potential: 50% of Honister IFAs we’ve seen to go direct
Collapse of Honister Capital leads orphaned advisers to begin working towards becoming directly authorised.
Many advisers that have been left orphaned following the collapse of IFA network Honister are planning to apply to become directly authorised rather than commit their future to another network, according to True Potential.
Daniel Harrison, a senior partner at the network and infrastructure provider, said that the firm had taken on more than 100 advisers from Burns Anderson, Sage and Honister since parent company Honister Capital was placed into administration in July.
He said: “These are people who had lost their livelihoods. We expect half to stay with True Potential Private Client Strategies as registered individuals, and the other half to become directly authorised eventually.
“We work with more than 4500 financial advisers, more than 800 of whom are directly authorised, so whichever route they decide to take we will support.”
True Potential has been undertaking a series of induction sessions at its Newcastle base for new advisers, with more planned over the coming weeks.
Damien Clyburn, an adviser for Devon-based Otter Financial Services and a former appointed representative of Honister, said: “I decided against joining another network on a permanent basis after the collapse of Honister. I want to be in control of my firm’s destiny.
“I spent four days last week on a residential course with True Potential Private Client Strategies as part of the process to become a registered individual. While doing this, I am also submitting a directly authorised application to the FSA.
“It means I will still be able to advise my clients while it assessed my application over the coming months.”
Mr Clyburn added that Otter Financial would continue its relationship with True Potential once he became directly authorised. He said: “We will still be able to use its back-office and compliance services, and will be paying it a smaller percentage than if I was an RI, with a much lighter touch.
“We’ve had a lot of support from within the industry following the collapse of Honister, and our clients have also been understanding.”