A business which grouped together financial advisers to offer clients access to more than £5bn worth of combined lending facilities has gone into administration.
Honister Capital, which also traded through a number of smaller businesses, gave members access to exclusive and semi-exclusive financial products.
However, the business of 900 self-employed financial advisors and 190 fulltime employees has been hit by rising costs of Professional Indemnity Insurance, driven mainly by large claims relating to historic business and, to a lesser extent, wider industry issues.
The administration took place on 3 July.
No customer of the Honister group, which includes Sage, Honister Partners, Burns-Anderson and its subsidiary B-A Financial Limited (BAF), should be disadvantaged by the administration, in that the contracts that underpin the financial services sold by the group are between the customer and the financial service provider.
Honister is based across three main locations, in Bristol, Hull and Macclesfield.
Nigel Morrison, Alistair Wardell and Richard White of Grant Thornton have been appointed joint administrators of all the companies.
Morrison said: “It is unfortunate 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 was formed when the businesses were purchased from The Money Portal Limited in 2009.
The administrators have set up two hotlines for those affected by this situation: client/adviser help line 01482 385385/ 01625 667000 and employee help line 0845 3022540