Information for advisers trading under the Honister Group of companies.

Update - 30th July

Honister Capital administrator, Grant Thornton, has released an announcement that commented "Please note that the agencies remain the property of the group. Advisers will need to obtain authority from individual clients for the transfer of their agencies as we (Grant Thornton on behalf of Honister Capital) will not be agreeing to the transfer of agencies at adviser level."

Berkeley Alexander will continue to accept individual client instructions to transfer an existing policy to a new agency, but any requests for a bulk transfer will need the authorisation of the Honister Capital administrators.

Previous Message posted 3/7/2012:-

It is early days as the news only broke yesterday (3rd July 2012). Berkeley Alexander’s formal position, therefore, will depend on developments over the next few days and on the position with the administrator and also with the FSA.

However as a short term interim position, Berkeley Alexander can inform network members of the Honister Group that:-

• In respect of commission in the pipeline on transactions already completed but yet to be paid:
  Until the position is resolved further, and as a short term interim measure, all commission due in the pipeline will be allocated to the individual adviser firm’s commission statement, but will not be remitted to the Honister Group.
• In respect of future insurance transactions (and commission in relation to these transactions):
  Until the position is resolved further, and as a short term interim measure, all client communications from Berkeley Alexander will be addressed directly to the client (so, for instance, a renewal invitation will be issued directly to the consumer), although we will refer to the adviser within the communication. Commission due on these transactions will be allocated to the individual adviser firm’s commission statement, but will not be remitted to Honister Group.
• In respect of transferring clients to another authorised firm:
  We cannot transfer clients en masse from an AR of Honister to another authorised firm without the permission of the original authorised firm (in this case Honister or its administrator). However should an AR to Honister join another authorised firm, the adviser is entitled to ask the customer to sign an agency transfer letter and we will look to accommodate any request to change the agency where possible. If a member firm would like a template agency transfer letter, please contact your normal BA contact/Business Development Manager. PLEASE NOTE however, if you look to become an appointed rep of another authorised firm, that authorised firm will need to agree that you can hold an agency with us. If you move to a firm that will not agree to have an agency with us, you will not be able to transfer the insurance business of that client from the Honister agency as no new agency will exist.
• In respect of new enquiries yet to be transacted:
  For any Honister member who finds themselves in a situation where a client needs help on their insurance polices (whether that be home Buildings & Contents, residential buy to let, ASU or some form of commercial policy), we are pleased to provide a short term solution until the member has found a new home. Simply contact us with your client’s name and contact phone number and we will look after your client, ensuring they receive the cover they need. Once the introducer has found a new home, we can look to move the policy to the agency under the new firm.
  
  PLEASE NOTE - Under FSA rules, the act of introducing is a regulated activity and any introducer should be authorised in some form. However where the introduction is made for altruistic purposes only and for no financial gain, the introduction is non-regulated. This means commission cannot be paid on the initial introduction until the firm is authorised (or an appointed rep to an authorised firm) and an agency with BA is set up. In addition the over-riding principle of Treating Customers Fairly (TCF) applies and to leave an adviser’s client without the route to arrange cover when it is needed would be against all TCF principles.