Bristol-based independent financial adviser Honister Capital has today gone into administration after directors failed to sell the struggling business. Most of its 190 staff are expected to be made redundant.
The group, which owns subsidiaries Sage Financial Services, Honister Partners Ltd and Burns-Anderson and its subsidiary B-A Financial (BAF), employs staff across its offices in Bristol, Hull and Macclesfield.
The group sold its products through a network of more than 900 self-employed financial advisors,.
Joint administrators Nigel Morrison, Alistair Wardell and Richard White of accountants Grant Thornton’s Bristol office, said no customer should be disadvantaged by the administration. This is because the contracts that underpin the financial services it sold are between the customer and the financial service provider, not the group.
Also the group does not hold any client monies.
Honister's directors had attempted to sell the business to maintain services for customers, the continued operation of the IFA businesses and employment for its staff. The administrators said despite "considerable efforts from all parties" it was not been possible to achieve a sale.
Mr Morrison said: “It is unfortunate that the only course of action possible in this situation for the group is an orderly wind-down. The administrators will be keeping on key members of the group’s workforce in order to assist us with the wind-down of the business. The group will not be trading in administration and members of the network will not be able to offer financial advice to their clients."
Honister Capital Holdings will continue to operate its direct-to-consumer business Willis Owen, which will be unaffected by the move.
A note sent to advisers this morning by Honister group chief executive Colman Moher said its advisers were no longer able to write new business with immediate effect.
The note is understood to say the group was exposed to large claims relating to business written by advisers who have long since left and this has severely affected the premiums it has had to pay.
As a result the group has been unable to obtain PII (Professional Indemnity Insurance) cover for the coming year which means it can no longer be trade.
Last August Honister announced it was shedding staff in a bid to reduce operating expenses as a result of increased regulatory and trading costs.
Honister was formed when its businesses were purchased from The Money Portal in 2009.
The administrators have set up two hotlines for those affected by this situation:
Client/Adviser help line – 01482 385385/ 01625 667000
Employee help line – 0845 3022540
