Personal Touch Financial Services says it is paying £200,000 to shoulder some of its members’ rising regulatory costs for the next year.
PTFS has today written to members informing them that fees are set to rise by around 5 per cent due to slightly higher PI costs and rising FCA fees.
The firm says it will absorb regulatory increases in the second half of 2013 at a cost to the firm of £200,000, equivalent to 12 per cent of total regulatory fees.
In September, Personal Touch announced a freeze of its own network member fees. It has also introduced twice-weekly commission payments.
The firm came under fire last year when it overhauled its fee structures, resulting in significant hikes for members.
Personal Touch marketing director David Carrington: “We have seen significant increases in our regulatory costs, which together with our PI premiums brings our total regulatory charges to over £1.6m.
“Obviously we treat these costs as disbursements to members and need to pass them on. But given our commitment to support members and equally reward them for their particularly hard work and loyalty in the past year, the board have taken the decision to subsidise some of the fee increase for 2014 using additional revenue generated by stronger mortgage volumes and other cost and efficiency savings we are achieving across the business.”
DB Financial owner Doug Bennett, who is an AR of PTFS, says: “The increase in fees is not down to PTFS as it is out of their control but it has made a contribution, which is welcome. It could have passed the whole lot on but it is helping out.”