Advisers across the South of England have complained that fomer network Financial Limited has billed them thousands of pounds for future levy costs – despite the advisers no longer being ARs.
In one case, a South-East based adviser was only with Financial Ltd for just over a year, from 2013 to 2014, but was shocked to find a letter on 4 September this year asking for more than £3,000 towards the network’s 2015/16 levy.
The adviser said: “I am already paying a levy with my new network and this bill has been a shock to the system.”
According to the adviser, there was nothing in the 13-page contract that talked about payment to future levvies, although there is a specification that there will be a retrospective levy applied, based on turnover.
Meanwhile, a Kent-based adviser, who left Financial Ltd at the end of 2014, said he had also received a “substantial invoice” from the network “as part of its attempt to recoup some of its 2015/16 FSCS levy.”
Both advisers had already paid all their sums before leaving, as well as a pro-rata contribution to the network’s interim levy for 2014/2015.
In January this year, the Standard Financial Group, of which Financial Ltd is a subsidiary, announced that it would be taken over by the Tavistock Group.
Right to Reply
A spokesman for Tavistock said: “All financial advisers are subject to a levy imposed by the FSCS and the substantial increases in this levy have been well-publicised. This is an industry issue, not a Financial or Tavistock issue. All network members past and present, that were members during the 2013/14 year, have been invoiced for the appropriate contribution. This is the year for which the network has been charged. No one is being singled out for special treatment.”
