IFAs who have gone directly authorised have claimed they are being treated unfairly and face hurdles ranging from having commissions and income frozen to losing client data.
Steven Ball, principal at Warwick-based SJB Associates, believes all networks treat people badly if they want to leave. Mr Ball said: “As soon as you hand in your notice, the networks stop your commissions.
“It’s the same with every network. I can understand why they do it but it’s not fair”,
he said, adding that a better way would be a legal agreement to cover any claw-back.
Mr Ball left his network in 2011. He said: “It took three months to be re-authorised by the then-FSA, which meant my income stopped and I had to start from scratch. Although I completed my contractual obligations and handed over my files, the network insisted on my handing over £600 for moving agencies.”
But his former network, Sage Financial Services, part of Honister Capital, went into administration in 2012.
Grant Thornton was the admnistrator for Honister Capital. In 2013, Grant Thornton stated that all trail commissions were owned by Honister Capital, and not individual advisers.
When asked about Mr Ball’s case, Grant Thornton was not able to comment at the time of going to press.
Right to reply
David Cross, press officer for the FCA, said: “On average, we authorise retail firms within 11 weeks. But the time it takes to authorise a firm depends on the quality of the application we receive. In the last reported quarter, we authorised retail firms in as little as two weeks.”
Ben Howell, head of Corporate Communications at Intrinsic said: “Intrinsic has a very clear process for any adviser looking to leave the network, and this is clearly outlined in our Membership Agreement. Our Contracts teams work with each individual leaver to ensure the process is understood and followed.”
