High Net Worth
Current Issue » NEWS » Financial Planning
Attempt to poach clients merely expression of "surprise", claims IP

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.

Attempt to poach clients merely expression of "surprise", claims Intelligent Pensions

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.”

Attempt to poach clients merely expression of "surprise", claims IP

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.

Perspective acquires IFA Chambers and Co

Perspective Financial Group has acquired its ninth independent financial adviser (IFA) firm in the shape of Chambers and Co.

Freedom Sipp faces oblivion of HMRC windup

High Net Worth has discovered that the Freedom Sipp faces imminent deregistration and windup.

Six in ten HNWIs go it alone

Just four out of every 10 high net worth individuals use wealth management services, research from YouGov has revealed.

Variable annuities are not the only answer, say experts

The announcement that Hartford Life is to withdraw from the UK market has received mixed responses from industry specialists.

Variable annuities are not the only answer, say experts

The announcement that Hartford Life is to withdraw from the UK market has received mixed responses from industry specialists.

Hartford abandons four year third-way campaign

Hartford Life has suspended its retirement and investment business in the UK, citing turbulent markets as the catalyst.

Online auctions allow banks to bid for customers

Web technology firm Alox Ltd has launched an online auction marketplace to allow banks and building societies to ‘bid’ for customers.

Nucleus launches new model portfolio

Nucleus Financial has launched a new model portfolio tool on its wrap platform, which it says will allow their investments to be better aligned to their risk portfolio.

FSCS to compensate Pacific Continental victims

Former clients of the stockbroker firm Pacific Continental Securities UK, which ceased trading in June 2007, may be eligible for compensation of up to £48,000 after the firm was declared to be in default.

Alistair Darling’s pre-Budget report reveals a few tax blows for high earners

Darling’s plunge into pockets of high earners could leave them £4k down

High net worth earners will be hit by a set of “Robin Hood initiatives” in chancellor Alistair Darling’s pre-Budget report (PBR), a tax expert said.

High earners hit by lifetime allowance freeze

The freeze on lifetime allowances to pensions will be another blow to high earners, in addition to a 45% tax rate cut announced in the

Bank of England: experiencing the strain of turbulence in the banking sector

Investors reveal fears about market volatility and the need to prioritise institutions’ security over good rates

Volatility and the security of financial institutions are among the primary concerns of investors in a turbulent financial market, according to this year’s High Net Worth cash balance survey (p15).

Search for best cash deposit rates to be made easier for investors via comparison website

Cash is a core element of all portfolios but requires management (see the Sipp & SSAS cash balance survey on page 15 if you’re not sure why), even if the government has stepped in with guarantees and increased compensation limits.

Guernsey: ‘business still coming through’

Caution recommended for offshore centres during slow market conditions

Offshore financial centres have so far managed to weather the global economic storm, but finance chiefs have told HNW they remain cautious.

Gem and metal price boom should prompt collectors to revalue

Jewellery collectors must beware of underinsurance as the price of diamonds and precious metals soars.

E-mail Updates

Poll

Relationships with discretionary fund managers (DFMs) will become more important with IFAs as we move towards RDR.

  • Absolutely. Can't do it myself, so why not get a specialist to manage my investment process?
  • Yes, I intend to use DFMs when they are suitable for specific clients, but not across the board.
  • Not sure. I have mixed feelings about outsourcing the investment.
  • No, I've had bad experiences in the past and I'm not sure I would trust a DFM with my clients.
  • Over my dead body. You couldn't pay me to use a DFM.
Subscription Advertising Contacts Privacy policy Terms and Conditions Webmaster

Mailing address: Financial Times Ltd, Number One Southwark Bridge, London, SE1 9HL, United Kingdom

© The Financial Times Limited 2010