The spokesperson said: “We are now working alongside the Financial Services Board (FSB), which has not determined that the earlier approach was not lawful. Indeed, we believe it was – and for many advisory companies in SA it remains their standard practice. This is now not the case with deVere.
“It must also be highlighted that this story originates from one of the aforementioned advisers, whose contract we terminated, and who since has set up a rival firm. All of the complaints mentioned in [the Moneyweb] article are from clients who were clients of the said former employee, during the period when he was their advisor in our company, before having his contract terminated by us.”
FSB review
“DeVere discloses all of the commissions it charges, and has done for some time,” company spokesman George Prior told Moneyweb. “It is ultimately a legal question, and whether or not there was correct application of the disclosure rules is precisely what the FSB is currently reviewing.
“The disclosure practice during the relevant period was based on the legal advice of reputable, specialist attorneys at the time.”
South African attack
The Moneyweb articles comes just two weeks after deVere Group founder and chief executive Nigel Green claimed his company was “under attack” in South Africa, with people “setting up fake sites and even creating fake client complaints”.
“It can be reasonably assumed this is from disgruntled former employees whose contracts we terminated and/or rival firms.
“It’s a sad reflection of some within the SA finance industry when they feel compelled to attack a proactive, forward-thinking, successful company such as deVere, which is fully authorised, regulated and licenced.”
UK overseas pension transfer advice halted
The international advisory firm also confirmed on Friday that it will no longer provide overseas pension transfer advice in the UK.
The UK regulator issued deVere with a section 166 or ‘skilled person review’ designed to obtain a detailed review of the firm’s activities.
The Financial Conduct Authority (FCA) ordered deVere UK to “immediately cease” providing third party companies with transfer value analysis (TVAS) reports or other similar reports of information “designed to assist third parties companies in transferring customers [defined benefit] (DB) pensions to an alternative arrangement”.
