Personal Touch Financial Services is set to terminate the contracts of 16 of its appointed representatives later this year.
The network has given the affected firms advance notice of its plans, with a one month formal notice period beginning on 29 November. Affected firms are having their contracts terminated based on how they measure against a number of factors including “solvency margins” and “responsiveness to regulatory messages”. Business volumes were not part of the criteria.
PTFS says the decision to cut the contracts is part of a five-year plan to scale down the size of its network. At the end of 2011 there were 700 members in the network compared with 400 at present.
Over the last 18 months the network has lost a number of senior staff, including former chief executive Doug Crawford, sales and marketing director Dev Malle and commercial director Jonathan White.
Personal Touch has written to all member firms who continue to meet the criteria for membership advising them of the move. It has also announced that support fees will be frozen at existing rates, which differ between firms.
DB Financial owner and PTFS appointed representative Doug Bennett says: “While this move may have been unexpected, it is important networks are financially robust.
“Members will welcome the news about the freeze to support fees, as it good to know at least one element of your future costs.”