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Ex-Park Row IFA abandons wait for re-authorisation
25 August 2010
A former Park Row adviser has decided to leave the IFA sector because he is fed up with waiting for the FSA to re-authorise him. Adrian Owen was a Luton-based adviser at Park Row Associates until 13 November 2009, when the firm was declared insolvent and advisers had their permissions revoked. Dozens of IFAs were forced to re-apply for authorisation elsewhere and Owen opted to join Personal Touch Financial Services (PTFS) as an appointed representative with Fife-based Independent One2One. But advisers say they are being held in limbo while the regulator investigates pension switching advice failings at the national IFA. After being unable to advise clients for 10 months, Owen says he has now withdrawn his application and has no plans to return to the industry. "I am too disillusioned by what has happened," he says. Owen and 27 other ex-Park Row advisers are involved in a legal battle with their former firm. The band of 28, who have been unable to service customers since November, has begun proceedings against their former employer claiming thousands of pounds in compensation for loss of earnings. Owen says he is now limited to acting as an introducer for Independent One2One because he is not authorised to advise. Dev Malle, PTFS group sales director, says he expects the trend for tighter regulation of advisers' authorisation to continue. "It is always sad to see someone exit the industry. I don't know how these advisers have been able to carry on for so long without being able to work. "Over the last nine months the trend has been for the FSA to tighten up its authorisation process and we expect this to get even stricter in future." He says the FSA's actions are partly a reaction to criticism the regulator has previously not been strict enough in its authorisation processes. In February, the FSA reported evidence a quarter of cases written by Park Row advisers continued to be "unsuitable" despite two years of warnings. It fined former chief executive Peter Sprung and ordered Park Row to pay customer redress of between £5m and £7.8m. However Foot Anstey lawyer David Turner, who is acting for the band of 28 former advisers, says it is Park Row's responsibility if "two or three really rotten apples" who were "not fit and proper" to give advice were allowed to bring down the whole firm. "If that is the case, it is still Park Row's fault for not picking it up on compliance." He adds none of the advisers he is representing, including Owen, have been categorised by the FSA as "not fit and proper" or as part of problems at the firm. Published by Mortgage Solutions
