Berkeley Alexander has introduced interim measures to help those members of Honister Capital who may have insurance arrangements in the pipeline.
Honister Capital went into administration yesterday.
“We have provided general insurance services to the members of Burns Anderson since the FSA started regulating general insurance back in 2005 and the members of Bates, Sage and the remaining Honister group members since 2007,” said Geoff Hall, Berkeley Alexander’s managing director.
“Those members are now in a difficult position in a number of ways, not least that they may have provided their clients with a quote for insurance but cannot now fulfill that quote.”
Hall added: “For any Honister member who finds themselves in a situation where a client needs help on their insurance polices (whether that by buildings and 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. They can simply contact us with their client’s name and contact phone number and we will look after their client, ensuring they receive the cover they need.
“Once the introducer has found a new home, we can move the policy to the agency under the new firm.”
Berkeley Alexander warns that under FSA rules the act of introducing is a regulated activity and any introducer should be authorised. 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 has been made an appointed representative to an authorised firm).
Also, 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.