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PosSol offers secret Keydata settlement discounts to current members

National IFA Positive Solutions has been making secret Keydata settlement offers which sees current members offered a discount of over 60 per cent on payment demands compared to former advisers.

Last week, Money Marketing revealed a group of 19 advisers has told PosSol they will not contribute to professional indemnity excess costs incurred by the firm   after it settled with the Financial Services Compensation Scheme

Letters at the time showed PosSol demanding £2,750 per case from former advisers.

It has now emerged those still with the network are being asked pay only £1,000, 63 per cent less than that demanded of former members.

One letter, seen by Money Marketing and addressed to an existing member from PosSol finance director Lisa Lockey, reads: ‘We are determined to minimise the financial impact on you and your business. With this in mind we have agreed to make a contribution towards the excess on each case.” 

The contribution from PosSol means the member is being pursued for an amount reduced by tens of thousands.

The letter continues with a series of “conditions” under which the offer is made, including a stipulation that the adviser keep the offer secret.

It says: “I am sure you will appreciate this is a significant and unprecedented offer by Positive Solutions and is therefore subject to the following terms: –

“If you resign or leave Positive Solutions for any reason within 12 months the discount will be reversed and you be asked to repay the full excess value. This offer will not apply for any future complaint excess charges.

“This offer is strictly private and confidential. Failure to adhere to this will result in the full amount being charged to you.”

PosSol declined to comment. 

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Hector's House 5th June 2014 at 2:25 pm

    No surprise to see more dodgy and unethical behaviour by Positive Solutions?

  2. Desperate actions from a desperate company – don’t expect them to be in existence much longer

  3. Oops looks like someone has let the cat out of the bag on this one. Personally I don’t think anyone should have a problem with this. Those who are still there contribution to PosSol getting a discount is a business decision for them. If you are no longer there, tough. I am not and have never been a PosSol member by the way. It will be interesting however to see how the fate of the 19 advisers who refuse to pay pans out. I can see their point of not wanting to pay as they had no input into any settlement figure. That said, I am sure there would have been something in their contract that covered this type of event which no doubt the advisers will have signed previously.
    Lets wait to see the outcome.

  4. Hector's House 6th June 2014 at 9:21 am

    It will be interesting to see how PS explain this one in court?

    More of a stitch-up than a business decision.

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