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PosSol offers secret Keydata settlement discounts to current members

Existing members asked for £1,000 to cover Keydata PI excess costs

National IFA Positive Solutions has been attempting to strike secret Keydata settlement deals which see current members offered a discount of over 60 per cent on payment demands compared with former advisers.

Last month, Money Marketing revealed that a group of 19 advisers had told PosSol they would 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 that those still with the network are being asked to pay only £1,000, which is 63 per cent less than the amount 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 of pounds.

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 will 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.”

Sovereign IFA director Mark Hibbitt says: “Having been part of a network before and seen our fees incur an extra levy to cover settlement costs on products we did not recommend, I would say the main concern here should be protecting other members not connected directly to Keydata.” 

PosSol declined to comment.

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Hector's House 13th June 2014 at 8:20 am

    Given that there was only one Claimant in this case. (the FSCS) There ought to be only one excess payable?

    No surprise to see that PS won’t comment on this matter.

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