Positive Solutions is to ringfence partners’ unclaimed fees and commission prior to 2008 following a recent investigation into an alleged fraud by an ex-PosSol adviser.
In May, Money Marketing revealed that PosSol had launched an investigation into the possible fraud of one of its advisers.
In an extranet bulletin posted last week, chief executive Jim Reeve told partners that the firm is introducing procedural changes to its suspense account of unclaimed adviser commission and fees to prevent future fraud.
In the bulletin, Reeve says: “While conducting research into the ongoing fraud case against an ex-partner, it has become clear that more protection is required to prevent such activity recurring.
“While the investigation is still ongoing, we are writing to inform you that steps must be taken and procedural changes introduced to mitigate the risk of further fraud.”
Reeve says suspicious transactions have, in the main, applied to the transfer of servicing process and monies most at risk are transactions dating back to 2005. It is understood that the alleged fraud involved the adviser taking commission payments from the firm’s suspense account that did not belong to them.
Marketing director Keith Gilmour says: “We believe that these process enhancements will not only safeguard monies in the suspense account but crucially they will protect our partners’ interests.”