Financial Ltd has warned advisers within its network that they must take its training and testing on unregulated collective investment schemes, or risk losing their independent status.
In the firm’s autumn business briefing video for members, director Brian Galvin reviewed the network’s recent ‘development days’ which featured specific additional training on the product , emphasising the sessions were “compulsory for all of you wishing to remain as independent financial advisers.”
Over 280 members attended the days and most stayed for the training on Ucis, taking a test that followed. Mr Galvin warned that those who did not attend will have to show what they are doing separately on the subject in order to prove their independence.
“The FCA has taken this very seriously and so do we. To that end we will be contacting you to ask what you have in place to ensure your knowledge and ability in this area or to take confirmation of your restricted status.”
In the message, Mr Galvin also responded to the recent accounts, pleading with advisers to focus on the “excellent trading figures”.
In July the Financial Conduct Authority served the firm with a recruitment ban for failing to have adequate controls in place over appointed representatives and narrowly avoided significant fines on the basis of its financial position.
Mr Galvin said: “In a year with such a high level of external scrutiny, to record a profit of £183,000, increase our cash position and at the same time reduce our amount held for provisions was excellent.
“At the same time, yes, we did write off some goodwill and that means a paper loss, but this has no impact on our trading position or capital base. This year is looking harder as the recruitment freeze impacts, but we are taking some serious steps to address this and new members are in the pipeline for next month.”
Mr Galvin also confirmed that professional indemnity insurance would increase in line with adviser turnover, although not in line with market rates he suggested were going up anywhere from 20-50 per cent.
“It is still an excellent result with excellent cover and no exclusions, but the cost of doing business is not falling I’m afraid.
“We’ll do everything we can to contain costs and maintain the service that we offer and as I’ve said before there are no plans to increase fees outside of the normal business cycle from April next year.”
peter.walker@ft.com
