National network Tavistock has sent letters and legal notices to its former members over non-payment of fees, which advisers claim they paid while working at the firm.
One adviser, after receiving one of the notices, described the company’s actions as “wrongdoing.” The adviser claimed to be seeking legal advice on the matter.
The notices followed a “large” invoice the advisers received almost a year after leaving Tavistock. The adviser claimed the fees, representing the FSCS levy and dues while working for Financial Ltd in 2013 to 2014, had been paid. Financial Ltd was bought by Tavistock in February 2015.
Another former Financial Ltd member, who also received an invoice for the 2015/16 levy, despite leaving the firm more than a year ago, confirmed that he had also received a letter.
This came as Tavistock Investments placed Standard Financial Group into liquidation as part of its integration of the business. The regulatory permissions of Standard Financial Group and its two subsidiaries, Financial Ltd and Investments Ltd, have now been cancelled.
Meanwhile, the “significant majority” of Financial Ltd’s members have been transferred across to the newly established network, Tavistock Financial Ltd.
Brian Raven, Tavistock’s chief executive, said: “We anticipate that the restructured business will contribute significantly to the company’s future profitability.”
| Background |
Tavistock completed the acquisition of Standard Financial Group in February 2015. In August, Tavistock said it would close down the recently acquired network Financial Ltd and replace it with a new incarnation. Tavistock now has a national network of 270 financial advisers. It has secured the opportunity to offer the services of its investment management business, Tavistock Wealth Ltd, to underlying clients, whose assets are estimated to exceed £3bn. |
Right to reply
According to an email reply sent by Tavistock spokesman Kate Boothman Meier: “Every step that Tavistock Investments Plc has taken in relation to the past members of the Financial network and the closure of Financial Limited has been entirely consistent with Tavistock’s prior agreement with, and commitments to, the regulator. Any further comment in relation to the business will be announced by Tavistock in due course when we consider it appropriate.”
shirin.aguiar@ft.com. Additional reporting by damian.fantato@ft.com
