Standard Life has been accused of clearing the way to make it easier for its 1825 advice arm to take on advisers’ clients, after it changed its platforms’ terms and conditions.
The group has updated the terms and conditions for its wrap platform so clients can now call Standard Life in order to change adviser, without the need for a letter of authority.
Standard Life’s terms also state that if a financial adviser no longer works on behalf of the client, then their personal data is passed on to Standard Life’s restricted advisers.
“We reserve the right to pass your personal data to Standard Life Client Management, who can provide you with restricted advice […] and they may choose to contact you to offer their services,” the terms read.
This is gearing up for 1825 advisers to take client assets from advisers AdviserA spokeswoman for Standard Life confirmed that a letter of authority is no longer needed, but that the telephone conversation was subject to normal security questions.
“Customers told us we were creating unnecessary barriers, and taking too long when they wanted to change adviser,” she said.
“We have made these changes so we are able to react quickly to customer needs, and this is consistent with a customer having the ability to make amendments such as changing their address or contact details over the phone.”
A financial adviser, who did not want to be named, said: “This is gearing up for 1825 advisers to take client assets from advisers.
“It’s not something we are happy about, but we have to accept it. Although from our point of view we are close to our clients and haven’t got millions of clients we don’t service, so this wouldn’t affect us.”
There have been mounting concerns from advisers over the threat of insurers poaching their clients, with Aegon being accused of trying to set up a direct-to-client relationship to the detriment of customers.
The launch of Standard Life’s financial advice arm 1825 has triggered concerns that the firm could be trying to compete directly with advisers’ businesses.
But Standard Life said this was “absolutely not” the case, adding: “1825 is not taking any assets from other advice firms and have no plans to do this in future.
“1825 is increasing assets under advice through the acquisition of leading IFA firms and the priority is to work with the businesses who have chosen to join 1825 to provide high quality financial planning to clients.”
The spokeswoman from Standard Life said client details are only passed on to restricted advisers if the client has not appointed their own adviser, adding: "Standard Life Wrap is purely an advised platform with complicated products and investment solutions".
“It is only where we receive an instruction to remove the adviser in writing or via the adviser that we would outbound a call to discuss this service.”
Tony Catt, compliance officer at TC Compliance, said: "Standard Life would appear to be looking for an easy way to pass clients to their own restricted advisers.
"I can understand that it is right that clients can change advisers by a simple telephone call, presumably with all the usual identification taking place to ensure confidentiality.
"But I would be concerned how the conversation would go regarding a new adviser. Is the question going to be “do you have a new adviser?” or would it be “would you like us to find an adviser for you?”
"Obviously the second point is a straight referral. The first one would also lead to a referral, if the client has no new adviser."
Dan Farrow, director of SBN Wealth Management, said: “Standard Life will always say that they have a duty of care to look after clients with no adviser, but they seem to have an aggressive in-house team that would love to approach clients who they may see as rich-pickings to service them, so this change makes that process easier.”
Standard Life firmly denied that this was the case.
