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Topics: positive solutions| Aegon UK
Positive Solutions is confident partners who resigned last week over an eleventh-hour directive that will see exiting advisers charged a leavers’ fee will stay with the company.
At least 18 partners submitted provisional resignations on Thursday hours after being made aware of the rule, which came into effect from midnight that evening.
The directive stated advisers leaving the Aegon-owned national IFA after 1 April would be invoiced for their share of the company's regulatory costs up to 31 March the following year.
Partners were told the fee would include, but may not be limited to, their share of FSA and FSCS fees as well as professional indemnity insurance costs, all of which Positive Solutions incurs in advance.
It said the directive protected those advisers staying with the company. Partners had earlier been told charges were increasing to reflect the rising regulatory costs.
Chief executive Jim Reeve says he is confident partners who quit in the wake of the announcement will change their minds.
"We are not trying to penalise partners, lock them in or charge them costs they are not due," he told IFAonline.
"We will engage with partners to try to understand why they have resigned. My hope is we will retain those individuals angered by the communication. I am confident I can change their minds.
"But this is a major message for the marketplace: the cost of providing the security Positive Solutions provides is rising."
Reeve says Positive Solutions is thrashing out exactly how a leavers' fee will be calculated before communicating that to partners this week.
Included will be the proportion of investment business written by an adviser, as this is used by the FSA to calculate FSCS levies.
In the last two years, Positive Solutions has paid £1.9m toward two FSCS interim levies to cover the cost of compensation claims against failed investment companies, including Keydata.
It says on both occasions it absorbed the charge with no financial impact on partners, but this is no longer possible.
Meanwhile, Reeve says the company was not trying to "be sneaky" by including the directive in a mailshot to parners just hours before it was due to come into effect.
He says the company had earlier finished a series of its Synergy events where it sought the views of partners on the charges increase.
"We did not think the leavers' fee rule would cause the upset it has," he says. "We learn from these things."
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| Comment | PosSol: We will not lose partners over leavers' fee furore |
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Treated disgracefully
What a load of rubbish! I attended one of the Synergy events referred to in this article. Jim Reeve made a passing comment that fees could be increased later in the year, but certainly did not seek the views of anyone at the meeting. All he said was that fees were like to be increased, but he had 'no idea' by how much! The way issues are dealt with in this outfit is disgracefull! No comment has been made by PS to its advisers since the emails were sent out last thursday!
Posted by: Scared of Reprisal
Greener Grass
I jumped of the PosSol ship a few years ago (just before they took a good network, sorry national IFA and messed it all up). In fairness to PosSol, despite what other networks say they all have to do much the same thing as PosSol. The difference is how they deliver the changes. I have seen an increase in charges over the last few years with Mint/Intrinsic but it’s always been reasonable, with fair notice and to some extent negotiable. I certainly pay less than what PosSol were asking before the changes let alone after. The one thing I loathed about PS what their attitude towards the people who are paying their wages, the advisers. Question anything or speak out and you are the scum of the earth. Want to talk to us, sorry e-mail only. Hit difficulties because of a credit crunch, so what give us all our lovely retention money. My advice jump of that sinking ship ASAP. (O back date that resignation letter before you post it though:-)
Posted by: EX PosSol Member
Yet another PS PR mess
The management at PS are continually making a mess of announcements and under estimating the effect that this is having on the advisers. It's absurd that management with their experience continually cock up and still expedct us to trust them to get procedures sorted out for RDR. I am on my way as soon as I can sort out where to go.
Posted by: Resignation Impending
VOTE of NO CONFIDENCE
Too many chiefs stripping fortunes out of the company and not delivering value for what they are being paid. Time for some to go. Treatment of advisers has been nothing but disgraceful. Hang your heads in shame
Posted by: anon
STRIIPING COMPANY BARE
J Reeves talks a load of rubbish again. Many partners have rsigned and will go, and many more are awaiting end of business year and lining up moves away. You cannot grasp how to control costs, too many fat cats on big salaries. Would be surprised if Pos sol is still there in 3 years. Maybe AEGONS masterplan.
Posted by: current partner
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"New rule"?
NOT. Dispense with the pretence that these people are 'partners'. They should reject any amendments to their contracts which are to their detriment. Who do these networks think they are? God?
Posted by: Exasperated Me