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PosSol postpones exit charge move

Positive Solutions has decided to put plans to levy an exit charge on members leaving the national IFA on hold.

The firm says feedback from partners made it reconsider the proposal.

Positive Solutions gave members just a few hours to decide whether to leave the national IFA firm last week before introducing an exit charge that would have cost firms thousands of pounds.

PosSol announced the new charge to all members through an email that reached inboxes between 4.30pm and 4.50pm on March 31, advising firms that the charge was effective from April 1.

Following the announcement, 18 members provisionally resigned on March 31. It estimated that the average cost to a resigning member was to be £2,000 with the fee depending on which income band the member falls into.

The firm also announced fee increases across all its income bands which are not being reconsidered.

PosSol chief executive Jim Reeve has today written to partners informing them changes to the leaver process have not been implemented.

Reeve says: “I believe there is reluctant, but strong support to increase our charges. But it’s also clear that the way in which we announced changes to our approach to leavers was seen as inappropriate. As a result, I plan to engage with our partners to further develop an approach which is seen as being appropriate and fair.”

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Comments

There are 12 comments at the moment, we would love to hear your opinion too.

  1. You couldn’t make it up!

    I think we know who should be resigning!

  2. Jim Reeve has managed to drag Positive Solutions name through the gutter the last week and he should be forced to resign by Aegon. And take a lot of his hangeronerswith him. I am with PS but will definitley leave now.

  3. Well for those who do jump make sure you don’t jump right back into the parasitic arms of yet another too good to be true sign here Network or Wealth Management Company! Go direct and buy in compliance.

  4. To Anonymous
    I feel genuinely sorry for you, we are directly authorised, but I have to say this is indicative of our industry. How PS can treat you like this, after all don’t you pay their wages? But look at it as a whole. Every week we get clobbered by some body or another, if it wasn’t PS for you, it would be the FSA or some other leech. Do the right thing, tell them to stuff off and find some organisation who appreciates you! Good luck!

  5. PS is a symptom not a cause because all they are doing is reacting to the reality of the market and that reality is one of terminal decline caused by regulatory cancer. One symptom, possibly fatal is RDR. RDR makes a fundament error in its failure to understand that intangible products are sold and not purchased and those selling skills are not the same skills that can be measured in an examination hall. The industry doors are closing to anyone with an entrepreneurial flair, but the doors will have a crack. The market will in time repair itself because no regulator on this planet can command a product provider to cease to make a profit. It remains a universal law of business that people buy from people and since time immemorial intangible products are sold and not purchased.

  6. Having been with PS previously, this type of stunt is exactly what made me leave. Mr Reeve is not fit to be in the position he holds and his approach veers drunkenly between incompetence and bullying. If only more partners would vote with their feet, he’d get what’s coming to him – the sack. The all too familiar email sent late in the day should in itself show the contempt in which he holds the people who actually make the company of any value – he and his ilk (not all of them but people will know who I mean) should sling their collective hook asap.

  7. John Donaldson APFS 7th April 2011 at 10:13 pm

    This is not a great way for Positive Solutions to treat its partners. How many Head Office staff and directors were also informed of a pay cut, due to the ‘rising cost of regulation’ – and if they were – were they told by e-mail and given a few hours notice? Surely PS could have guesses the feedback they would get? If not, why not?

  8. The last 3 years have seen nothing but grief from Jim and this backdown was already predicted as a cynical ploy to sweeten the increase in charges.
    How Aegon can allow this destruction to carry on amazes me.

  9. Well now PS ‘partners’ know of PS’s intentions to impose an exit charge surely this is going to open the floodgates for resignations.

    Taking a salary comparable to a chief exec of a FTSE100 company and consistently losing money is nice work if you can get it.

    Someone call the new Aegon chap to get back in the original founders of PS to sort this mess out.

  10. I was thinking of joining but this has put me off!What a shambolic way to treat Partners!

  11. When I joined PS in 2005 the breakeven point per partner was £6,000 hence where the £20,000 minimum came from. I’m now directly authorised and appreciate costs have gone up but I can’t help feeling it’s the increase in staff from circa 60 in 2005 to the estimated 150 staff they have today.
    It’s obvious the leadership within PS amd the initiatives they have bought to the company over the last 3 years, have really paid off.

    I wonder if Jim Reeve has taken a salary cut.

  12. Money Marketing should ask Jim Reeve how many partners he has today and ask the same question in 3 and 6 months time. The answer will be that their is more head office staff than advisers. If anyone has any wit about them they will see its time to go and then Reeve can cut his own wages.

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