PTFS to charge ARs monthly fee
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Personal Touch Financial Services is to introduce a monthly £125 flat fee for its appointed representatives from April 1.
Dev Malle, group sales director at PTFS, says the fee has been introduced to cover a shortfall in mortgage business over the past couple of years.
He says: “We have given our ARs two months’ notice. We are one of the few networks left that didn’t charge a fee and £125 is still very competitive compared to other networks.”
He adds: “If you look at the last couple of years there has been a huge reduction in mortgage business, but our costs have not changed.”
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Readers' comments (14)
Anonymous | 29 Jan 2010 4:39 pm
This letter will undoubtedly unsettle a great many AR’s within PTFS.
The departure of Martin Wilson is still shrouded in mystery but I would hazard an educated guess that Martin was dead against this move and that is why his fellow directors got rid of him.
A very sad time for PTFS indeed and a very short sighted move by the current management team. If they are so cash rich with no debt then why the hell punish their AR’s financially after the battering we have all had last year.
It’s an absolute disgrace.
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Anonymous | 29 Jan 2010 5:31 pm
Malle says “If you look at the last couple of years there has been a huge reduction in mortgage business, but our costs have not changed.” This is not true as they have shaved more off the net mortgage proc fee we receive last year. Typically this was introduced without any warning and with immediate effect. In addition they have increased their share of protection by 2%.
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Anonymous | 29 Jan 2010 5:38 pm
We are an AR of PTFS and we haven't even be notified of this yet.
We must assume there is a letter in the post.
Very disappointed. You would have thought we could have got a phone call. To read about this on the 'Net is just not on.
We wont be reacting quickly on this but will be expressing our disgust with our BDM.
As for the £125. PTFS have sucked in a lot of AR's based on their USP of no fees. This will hit the small producers and perhaps in the long term will see them merge with each other.
Makes business sense but they have radically changed their proposition.
What with all the market difficulties as well it now seems the party is well and truly over.
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Anonymous | 31 Jan 2010 9:50 pm
Costs haven't changed in the last two years ? , what about moving into new offices at trinity park ! I'm glad i left PTFS, i wouldn't pay for nicer desks and pot plants in the SQR dept !!
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Tony Corrigan | 1 Feb 2010 8:01 am
If the alternative is another network going bust then this is a small price to pay for financial viability. Would advisers rather the business fail and all their pipeline be lost as in other networks.
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Anonymous | 1 Feb 2010 12:55 pm
Are these new additional fixed charges, +£1,500 per year, just thin end of the wedge?
What will they charge us with next?
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Anonymous | 2 Feb 2010 8:25 am
I currently pay a 15% Retention on all business.
I have also discovered that I am also paying a 2% additional retention on business sneaked in without any communication to existing AR members.
We don't receive an accurate breakdown on these payments as it would expose the truth as to what goes on behind the scenes.
We know have the £125 monthly charge introduced
Also there is a £255 monthly charge for IFA's
These monthly fees are applied per firm not per adviser. Therefore the majority (who are sole traders) are being penalised whilst the larger firms pay a fraction of our costs.
PTFS have a habit of changing agreements without your knowledge or communicating with AR members.
We were ALL told that Procuration fees would have no deductions taken - full amount paid to AR's. This was also changed without notification. In fact I question if they did ever pay these gross, or was this just another lie.
General Insurance fees - 15% deduction applied, again without notification
As a Network they have become just like all the others.
I don't suppose the difficult times will prevent them paying for lavish conventions overseas funded by guess who?
Once again, I am left to rue my decision on using a network as opposed to going directly authorised.
More fool me.
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Roberto Marchini | 2 Feb 2010 12:26 pm
As a PTFS member with two ARs the decision to impose a network fee has an obvious effect on our fixed costs, but I would rather have this and be confident in the long term security of the network. Having looked at other network propositions PTFS's remains highly competitive in both service and financials. We get paid good commission levels and receive them every week.
PTFS aren't perfect and the introduction of this new cost is hardly welcome but at least this time it has been communicated upfront and with 2 months notice.
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mortgagemicroscope | 2 Feb 2010 3:08 pm
I'm sorry, but where do these Networks add value???? We get the customers, assume the risk for advice and stay in touch with the client. Where or how do they help? They dont. They live off overrides, base points etc and now you pay a fee as well!
Go direct .
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Anonymous | 2 Feb 2010 3:53 pm
I suspect that this is very short sighted and will be considered a mistake in the near future when they are rattling around Trinity Park wondering who they will need to make redundent next. Very disappointing. Have they forgotten that we are all capable of going direct?
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