Tavistock Investments has told former clients of failed advice network Financial Limited, which it took over last year, the funds put aside to pay compensation are now “almost exhausted”.
According to a letter sent out to clients on Thursday (7 July), advice network Tavistock has now “discharged the undertakings” which it gave to the Financial Conduct Authority.
Past business reviews – namely looking at pension switching and unauthorised investment schemes – have been carried out since 2014 to examine the financial advice carried out by Standard Financial Group subsidiaries, which include Financial Ltd and Investments Ltd.
In the letter sent out on Thursday, chief executive of Tavistock Brian Raven said the review was conducted because “it was possible” customers had received “misleading” or “inappropriate” advice from their adviser.
In the letter, he advised clients of their options now the money, which had been collected from former appointed representatives for redress payments, was nearly drained.
Mr Raven said clients who want to lodge a complaint against advice given by an appointed representative of Financial Ltd before 14 February 2015 should speak to their current financial adviser and the Financial Services Compensation Scheme.
The letter reads: “No review by Tavistock will be undertaken as the funds are now almost exhausted. If you choose to progress this matter further, you will need to contact the Financial Services Compensation Scheme.
“If we are contacted by the FSCS advising that you wish to make a claim, we will pass your client file to them.”
Clients who received advice after 14 February 2015 were told to direct any queries to Tavistock.
An adviser, who wished to remain anonymous, said: “Tavistock have written to every one of my clients, by registered post, (who were never sold Ucis investments) making them question the advice I gave because it was unregulated and telling them to sign copies of the letters and implying they should make a complaint.
“This is disgraceful behaviour by a company who are obviously attempting to break the relationships between the IFA and the client, cast doubt, and enable contact between Tavistock investments and clients.”
FTAdviser contacted Tavistock with the claims made by the former Financial Ltd adviser about their letter, but a spokeswoman for the firm declined to comment.
Tavistock acquired Standard Financial in February 2015, rescuing the firm after it suffered financial difficulties and was threatened by commercial failure.
Tavistock recently came under fire for pursuing former appointed representatives of Financial Ltd for costs linked to advice which had previously been deemed suitable.