The Pensions Office is apologising to introducers for the late payment of commission after 90 per cent of its staff walked out on the same day.
Director Keith Popplewell says nine of the 10 staff res-igned towards the end of July due to a dispute over employment contracts and as a result the firm has been unable to pay commission to brokers who pass on pension transfer business.
Brokers were unable to get in contact with The Pensions Office and were unsure what was happening after monthly commission payments were not received on July 31.
Popplewell says the FSA has been fully informed of the situation and he is in weekly contact with the regulator.
He stresses that the company is still running and is intending to take on a lot of new business once it has recruited new staff.
Popplewell says: “I am in the process of writing to all our introducers to apologise for the late payment of commission and to let them know that they will get paid but it may take a few weeks. We are in the process of recruiting new staff and have already recruited four people. The business is financially cash-rich and there is no problem with cashflow.”