Killik & Co have been accused of “unethical” behaviour after bypassing an adviser to directly contact a client.
Speaking to FT Adviser, DG Financial Services director and chartered financial planner, Russell Golledge, said Killik & Co had sent a letter directly to his client, who has a portfolio with the firm.
The letter, seen by FT Adviser and written by a Killik & Co associate investment director, said they would like to “arrange a time for us to speak directly, namely around moving your account to a lower cost equivalent”.
The letter also stated that it intended to discuss the “ongoing relationship we have with Russell”.
Killik & Co also told the client: “I do not have a contact number, nor email address for you, hence my letter”.
Golledge said he was first informed about this via a phone call from the client.
“The first words out of her mouth were ‘this letter seems very unethical, the way they have contacted us directly and not contacted you’,” he said.
He said the client was “angry” about receiving the letter and that they were “very happy” that Killik & Co did not have their contact details so they could not receive a call or email.
“They kept saying ‘this is unethical, they shouldn’t be doing this. Can they do this? We deal with you not them’, Golledge said.
'Easy target'
As a result of Killik & Co's letter mentioning the “relationship with Russell”, Golledge said, from his point of view, it looked as though the firm was trying to “quiz how much contact the client has had with myself over the years that they’ve had a Killik account”.
He argued this indicated Killik was conducting their own investigation to “maybe disrupt that connection, trying to slide themselves in and exit myself”.
Golledge added that DG Financial Services does not have a lot of money with Killik & Co, as the client in question is the only one it has with them, possibly making them an easy target.
“I’m assuming they are trying to go after smaller accounts or IFAs they don’t deal with on a regular basis. Therefore, if they upset me and I take the account away from them, it’s no big deal,” he said.
“They bypassed me and went straight to the client using the carrot of a ‘we can move you to a cheaper platform’."
In response, a Killik & Co spokesperson said: “All our advisers contact their clients regularly to ensure that the service we are providing remains the best option for them.”
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
