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Network faces row over cash

Several appointed representatives of Premier Network Group, which closed to new business on February 16, are threatening to launch legal action over outstanding renewal commission and procuration fees.

DFC Money Solutions director Marell Gillespie says PNG owes her around £2,500. On March 17, she says she notified the net- work that she would initiate a winding-up petition if it failed to pay the outstanding sum.

On March 23, PNG suspended Gillespie’s authorisation.

Gillespie says PNG failed to notify her of the suspension and PNG managing director Steve Moorley refused to provide a reason for the action.

She says: “PNG will not take calls or answer emails and because of the suspension we cannot trade. I am now in the process of taking legal action.”

TFC Mortgage and Loans principal Kal Kandola claims she is owed around £3,500 by the network and is also considering legal action.

She says PNG suspended her authorisation in early April without notifying her.

Kandola says Moorley subsequently told her that PNG had not received her client files but she insists that she arranged on three separate occasions for Moorley to pick the files up from her office and each time he cancelled the appointments.

She says: “I have offered to drop the files off to their offices but they refused.”

PNG head of group operations Paul Fisher denies that the company prevented Kandola from delivering files and insists that suspensions occur only when members fail to provide outstanding compliance and complete files.

He says: “When put in this position, the network will rely on any means at its disposal to ensure they comply. Therefore, non-conforming with the network’s terms and conditions will result in suspension.”

Gillespie says that she sent all the requested documentation to PNG but claims that the network has repeatedly denied receiving them.

Fisher says the advisers have no grounds for legal action: “As stated in our contract, we are entitled to hold on to commission until the terms are satisfied. Which bit of this do they not understand? Do you think that if we paid them the commission owed, I would get the files and the compliance corrected? I can’t and won’t take that risk,” he says.


Diverse reaction

Many adviser firms are looking for new sources of income to help them through the economic downturn and it is not surprising that this trend is showing on the regulator’s radar as a potential TCF risk.

Health - thumbnail

Absence management systems gone AWOL from UK’s SMEs, reports Jelf

A quarter (23 per cent)* of the UK’s small to medium-sized enterprises (SMEs) do not have an absence management system in place, according to new research from Jelf Employee Benefits. Despite 69 per cent* of organisations having a system in place, three-quarters (75 per cent) report that it is not providing them with sufficiently empowering absence or health data to inform an effective wellbeing programme.


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