PosSol rethinks leavers' fee rule after partner uproar

Positive Solutions has delayed the introduction of a 'leavers' fee' after a number of partners 'resigned' from the business in protest.

Chief executive Jim Reeve has written to advisers saying he wants to ensure any new directive is "fair and appropriate".

On 31 March, the Aegon-owned national IFA notified its 1,250 partners of an increase in retention charges from 1 July and announced a new approach to leavers, with effect from 1 April.

The new approach would see exiting advisers invoiced for their share of the company's regulatory costs for up to the next 12 months.

Reeve said the directive was necessary because it currently pays FSCS and FSA fees, as well as PI premiums, up to a year in advance and it needed to protect the "loyal" partners staying with the business, who would otherwise have to stump up for the advisers who had left.

As partners were only informed of this particular change no more than eight hours before it was being introduced, no fewer than 18 handed in their resignations in protest.

Most included a clause in the resignation stating it could be withdrawn if Positive Solutions reneged on its plans.

Now Reeve says the company will re-think the directive after admitting the way it was announced was "inappropriate".

"There is a broad acceptance and understanding among our partners of the need to maintain a strong and viable business in a market where the costs of regulation have risen significantly," he told partners this afternoon.

"I believe there is reluctant, but strong support to increase our charges.

"But it is also clear that the way in which we announced changes to our approach to leavers was seen as inappropriate.

"We have listened to partner feedback and, while these changes were developed with the best intent, were designed to safeguard the interests of Partners and are already standard across the market, I understand their views.

"As a result, I plan to engage with our partners to further develop an approach which is seen as being appropriate and fair.

"These changes were never intended to lock partners into the business. They were simply applied to ensure that partners were not paying for the regulatory costs of others. While the review process is underway we won't be implementing the changes to our leaver process."