One of the consolidators that took part in the Financial Conduct Authority’s review has criticised the process and said the regulator should focus elsewhere.
Simon Chamberlain, chief executive of Succession Group, said the FCA looked at some of the company’s files as part of the watchdog’s review of consolidators and he said it “came out of that process feeling healthy”.
But he said his encounter with the regulator raised questions about the FCA’s decision to examine the suitability processes consolidators use when acquiring businesses.
He said: “It is complete nonsense that consolidators involve themselves in shoehorning or driving assets into one particular place. If anyone has got anything to lose by that it would be us.
“We can demonstrate that very clearly because we have been through this audit.
“They should be looking at large nationals, which are restricted.
“Those clients who used to be in the IFA’s company have one route.”
Last year a number of financial advice consolidator firms were contacted by the FCA and asked to hand over 10 to 12 per cent of client files in order for the regulator to review their records.
The regulator requested information during autumn as part of normal supervisory work, and not in preparation for a thematic review.
Earlier this month Succession bought Beckenham-based Maze Wealth for a total consideration of £1.2m.
In the last three years Succession has purchased 25 firms and plans to buy the best 50 firms from its affiliated membership by the end of 2017.
Succession has said it will launch its discretionary fund management proposition, which it got permission from the FCA for in March, on 1 August.
A spokesman for the FCA was asked to comment but did not respond.
FTAdviser also approached other consolidators such as Bellpenny, AFH and Attivo to find out if they took part in the review and what they thought of it.
Bellpenny declined to comment. The other companies have not responded to a request for comment.
