An IFA firm has been accused of trying to poach a rival’s clients by suggesting they could save money by abandoning their current adviser.
Advisory group Intelligent Pensions (IP) has written to former clients, now with rival firm Strategic Retirement Solutions (SRS) – run by former IP directors Gary Forster and Helen Glover – without their advisers’ knowledge.
A letter from IP's managing director Steve Patterson, suggested former clients could save money by sacking their advisers and further implied they could benefit from “unique” access to Sipp provider James Hay’s services.
In the letter, seen by highnetworth-online.com, Patterson wrote: “As [IFA] has evidently decided to align itself with SRS, if you decide to reappoint IP… you would have the option to continue with [IFA] as the investment agent or not, potentially reducing your costs by up to £xxx per year.”
In addition, he alleged: “there is no authorised adviser working from the SRS Glasgow office and we cannot see how any recommendations can be properly checked or signed off”.
The letter stated that clients remaining with IP would benefit form its status as “one of James Hay’s top accounts”, citing its “unique relationship” with the Sipp provider that means James Hay provides extra support services unavailable at SRS.
The letter added: “While we acknowledge [Forster’s] undoubted consultancy skills, and were disappointed to lose him, we find it difficult to see how SRS could possibly offer such a comprehensive package.”
Patterson’s actions would appear to have been taken unilaterally, as Richard Harrison, business development director of IPS Partnership, which recently acquired James Hay, told HNW: “I would not expect anyone at James Hay to agree to that sort of wording or give their sanction to that letter being sent out to their clients.
“James Hay would not offer a product through one adviser, which it did not through another.”
One anonymous IFA of a client contacted by Patterson, felt such contact was against the spirit, if not the letter of treating customers fairly and claimed it resulted from Patterson taking their decision to move business away from IP “too personally”.
“What he’s doing is commercial suicide,” said the source. “I’ve one elderly female client who’s received five letters already; she’s most upset by it all.”
Patterson rejected most of the source’s allegations, stating only two letters had been sent to former clients 10 days apart.
“The first to express our surprise and the second to give them the option to reappoint IP,” he said.
“The letter does not implore former clients to cut out their IFA and deal directly with IP. Rather, the letter informed former clients that if they decided to reappoint IP as their adviser for the arrangements, then they would have the option to continue with their IFA as the investment agent, or not.”

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