Lawyers' service provider Solicitors Financial Services is ending its contract with national IFA Inter-Alliance.
It is refusing to elaborate on why it is dropping the firm although Inter-Alliance says it is because they failed to reach a deal on fees.
SFS acts as an IFA referral services for its 1,000 members, putting them in touch with its panel of Inter-Alliance, Towry Law and Barclays bank subsidiary Sedgwick Financial Services.
SFS served notice on Inter-Alliance at the start of April and advised its members of the decision. It will terminate the agreement, held since 1999, on July 7. It says it has no plans to select another IFA to replace Inter-Alliance on the panel and will keep with Towry Law and Sedgwick.
SFS chief executive Richard Pearce says: “We are not prepared to make any statement other than we no longer want them on the panel and have given the three-month notice period.”
Inter Alliance spokesman Charles Ansdell says: “SFS made the final decision to terminate the contract. But we have about 500 similar contractual relationships but less than 100 with the SFS scheme. The situation was under review because we felt the pay deal at 30 per cent was too high. Our average is 10 per cent.”