Collapse spells troublefor IFAs.
Scores of independent financial advisers in South Wales are currently unable to give clients investment advice after the collapse of a Treforest-based compliance network.
Interlink Premier Network (IPN) represented nearly 200 independent financial advisers (IFAs) across the UK.
As part of the membership deal all the compliance work on investments written by IFAs was handled by IPN.
IPN would then receive commissions from financial institutions and after deducting its fee would pass on payments to its members.
The family company, headed by its chief executive Roy Tomkinson, ceased trading last week with spiralling debts.
Swansea-based insolvency practice Stones & Co has been appointed liquidators.
A meeting of creditors will be held at the Marriott Hotel in Swansea on April 2 at 3pm.
One IFA which is owed a significant amount by IPN is Cardiff-based Goldstein Investments. Goldstein has around pounds 30m of funds under management for its client base, many of whom are millionaires; it now intends to do its own compliance work.
Director Phil Spierling, said, 'Over the last six months we experienced payment delays with IPN and we were not surprised to learn that the company had gone through.
'We have not been paid this month and it unlikely that we will get a penny of what is a considerable amount back from the liquidator.
'For many IFAs in South Wales this is going to hit them for six, as they have been effectively de-authorised from giving any investment advice to their clients.'
Registering with another compliance network or securing approval from the Financial Services Authority for IFAs to take on the work themselves could take up to six weeks.
Mr Spierling said, 'Our clients are fully aware of the situation and have been very understanding, but with the next financial year coming up many smaller de-authorised IFAs face losing significant business.'
Mr Spierling said about 50 Welsh IFAs were part of the network.
He added, 'What is disappointing is that they have all shown massive loyalty to IPN over the last six months with nobody leaving.
'Its collapse means that we no longer have a compliance network based in Wales.'
|Printer friendly Cite/link Email Feedback|
|Publication:||Western Mail (Cardiff, Wales)|
|Date:||Mar 26, 2004|
|Previous Article:||Minister assures MP: No more job cutbacks at Dara.|
|Next Article:||Manufacturing sector enjoys orders at a three-year high.|