The notice period is currently one month and PTFS must give the same notice for fee changes. If a firm would like three months’ notice of fee changes, PTFS will require it to give three months’ notice to leave the network. It will also introduce a six-month notice option.
New contracts are being sent to advisers. IFAs must return them by 21 January and mortgage firms by the end of Q1.
PTFS marketing director David Carrington says: “We want to give our members as much time as they need to factor changes into their business planning.”
In September, Mortgage Strategy’s sister publication Money Marketing revealed PTFS hiked its fees following an overhaul of its charging structure, moving from a flat monthly firm fee to a monthly firm fee plus a fee for each registered individual.
Which Network director Gary Watts says: “I think most brokers will stay on one month’s notice, especially after the controversial changes to the fee structure. If they lock in for six months, the network ends up holding all of the cards if they need to leave.”