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.”