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Grassroots revolt at DBS fee hike

DBS is facing a grassroots rebellion after it announced plans to increase its fees dramatically.

The move has led to members writing to the network&#39s board and one area representative predicting an exodus of up to 10 per cent of members.

IFAs claim the hike effectively amounts to a pay cut for 2002 and are accusing DBS of concealing general price rises behind the additional compliance costs of N2.

Others have claimed the price rises are an attempt to impose Misys&#39 charging structures on DBS members. Many members are reporting approaches from other networks.

DBS is defending the restructuring, saying it is simply reflecting the increased cost of compliance since N2. It says it has absorbed the additional cost of the pension review, the FSAVC review and rising compliance charges for years and that members have not seen price increases since the mid-1980s.

DBS area representative and Interface Financial Planning director Alan Moran says: “DBS has only just recovered from its handling of the pension review fiasco. This is definitely on a par with that. I have had a lot of contact from angry IFAs already, and I could see DBS easily losing 10 per cent of its membership.”

Shropshire Independent Financial & Mortgage Services principal Rosemary Heaversedge says: “When I joined DBS 11 years ago it was there to help IFAs – it is now there to line directors&#39 pockets.”

DBS chief executive Nick Ansell says: “I do not know whether people will leave but when people review the market they will conclude we still represent good value.

“People who do not want to pay these prices need to consider whether they still want to stay in the market.”

Details, p3

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