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FSA prevents transfer of 23 HoC ARs

Home of Choice has revealed that the Financial Services Authority is preventing 23 appointed representatives from re-authorising under the First Complete banner.

A spokeswoman for the network says 13 ARs were suspended or being investigated by the FSA when the network went into administration.

But she says a further ten have been denied re-authorisation by the FSA but have not been told why.

She says: “The FSA has said 23 ARs can’t transfer over. Some 13 ARs were subject to a compliance investigation at the time of administration so that suspension carries on. The FSA has not made clear why it does not want the other ten to transfer.”

A spokeswoman for the FSA, says: “We are working with the firm to effect a bulk transfer of ARs where possible.

“We expect the firm to take a view on the ARs it wishes to transfer. As part of the FSA’s more intensive and intrusive approach, we look closely at all applications.

“Some applications will require more detailed consideration than others and may therefore take longer to process.  Firms who have concerns should speak to Home of Choice directly.”

As part of the acquisition by LSL approximately 450 ARs were due to transfer.

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  • Dave Doncaster 11th May 2010 at 3:03 pm

    My my my…….at last the FSA have seen fit to actually get involved with network transferred ARs. About time. I was previously responsible for the transfer of 2 networks ARs and with proven due diligence found some that were definately not going to be joining us. Due diligence should be entirely carried out by the buying network to such a degree that this should then evaluate the quality of the amount of ARs being purchased. This would hopefully prevent some networks from just going for quantity instead of quality. As my previous managing director used to say “The network is only as strong as it’s weakest link!”.
    Networks should take more time to bring on board fit and proper individuals that they would be willing to let do business for their mother. If not, dont enrol them. If you have done your part of the due diligence, then these individuals should sail through the FSAs requirements.

    Mind you, this does beg the question;
    How many of these being stopped by the FSA now, would the FSA had let become directly authorised.
    The way the FSA has dealt with things in the past…..all of them!

  • john higgins 11th May 2010 at 2:54 pm

    so to all the comments from people saying what a great job the HOC directors have done, what about these poor AR’s. Not only have they not been authorised but you can bet they wont get paid the commissions they are owed either. The deal was always aimed at saving the skins of the board and not protecting the AR and this is further proof.

  • john higgins 11th May 2010 at 2:54 pm

    so to all the comments from people saying what a great job the HOC directors have done, what about these poor AR’s. Not only have they not been authorised but you can bet they wont get paid the commissions they are owed either. The deal was always aimed at saving the skins of the board and not protecting the AR and this is further proof.