Smaller banking finance insurance job uk
financial advisers like Treorchy’s Lifestyle Financial Choices tend to be members of a network.

Commissions from insurance companies are paid to IFAs like Lifestyle through the network.

Lifestyle claims that the closure of network company Interlink has cost them 100,000.

David Westcott is a Director of Lifestyle Financial Choices.

Cash inflow to Lifestyle Financial Choices has stopped

“To be running a business and to have your cash flow investment mcgraw hill irwin series in finance insurance and real est
stopped and then be told that you can not trade for a number of weeks, that is a massive impact.”

What went wrong?

Interlink recorded a 400,000 profit last year - so what went wrong?

Interlink Chairman Roy Tomkinson told Politics Show that the cost of insurance cover became prohibitive.

When plans to sell part of the company for 2m fell through, closure beckoned.

Whilst these problems were at their height last January, the FSA visited Interlink to review the firm.

Mike Gwyther, of Kingswood IFA in Abercynon, wants to know what was the result of that investigation.

Mike Gwyther: ‘We want to know why’

“We want to know whether they strictly monitored the company, had a look at the accounts …

“I mean, it is a ridiculous situation that two months after their visit the company collapses. And we want to know why.”

Red tape?

The FSA told Politics Show it is bound by legislation not to discuss dealings with regulated firms, with third parties, unless enforcement action has been taken.

Without a network, Interlink’s member firms found themselves without car insurance finance
to trade until they connected to another network company.

But car finance insurance personal quote tesco
the red tape involved in making that sort of switch has kept many of them from making any money for several weeks, at a tremendous cost.

Now they are asking why the FSA makes it so difficult for them to keep trading when they have done nothing wrong.

Adam Price, MP: ‘Investors punished by zuerich insurance finance failure’

One Welsh MP feels the FSA has a duty to address the situation. Adam Price is Plaid Cymru MP for Carmarthen East and Dinefwr.

“Obviously something has gone amiss within the network company Interlink but also something has gone amiss with the regulator.

“The only people that are innocent here, of course, are the Financial Advisors themselves and their customers.

“Why should they be punished for the lack of oversight by the regulator?”

Pension owed

Howard Davies may have lost his pension

Private individuals have also been hit by the closure. Howard Davies is owed a pension of over 100,000 by Interlink.

“To find out that basically everything around us had collapsed as far as my pension is concerned is probably one of the worst shocks I have ever had in my life.”

Many working in the financial industry are adamant that lessons must be learnt from this crisis and that the FSA must regain its bite.

If not, the consequences for Welsh businesses and their customers could be grave indeed.

Politics Show

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That is the Politics Show Sunday 16 May at Midday.

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