IFA group Positive Solutions has criticised rival Bankhall over its claims that it cannot reconcile its advisers' commission because of inaccurate electronic statements from product providers.
Positive Solutions is also part of Adviser Forum, the group which is carrying out research into what it considers to be a serious problem with electronic commission statements from providers.
But Positive Solutions chief executive David Harrison says his firm does not experience the difficulties described by Bankhall IT director Nigel Hopwood.
Harrison says 100 per cent of the EDI statements that PS receives match the cash receipts. He says the group's own custom-built system handles up to 31,000 separate statements from 273 provider sources and pays them out to 750 IFA partners.
Harrison says he believes the problems lie with the IFAs, not the providers. He says: “Logically, if we can show that we do it, then the problem cannot lie with the providers. But unless an organisation plans ahead and is clear about its model and IT structures, there will be issues.
“Anyone with simply a 'commission club', 'minimum service' offer will have issues regarding master and sub agencies, not just with commissions but also with post and servicing communication. This is also true of networks. It begs the question what do these organisations do for their members – if they cannot get the money right, why get in the way at all?” Towry Law operations and IT director Tony Dunmore says: “We have not experienced any of these problems with provider statements not matching the amounts received. Occasionally, we will have a disagreement with providers over the amount we are expecting but this can be resolved.”