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Personal Touch Financial Services freezes charges for ARs

The marketing director of PTFS said: “The cost of administrating firms that demanded higher resource is now going to be reduced. If you can continue to find efficiencies you can remove the additional cost from existing members.”

The move came after the network wrote to 16 member firms last week to give them three months’ notice of contract.

At the time, Mr Carrington said: “It has been a difficult decision to make but it was the right one. The majority of our clients are mass affluent, families with mortgages and savings and protection needs. This is our heartland and where we will continue to support clients.

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“We want to continue our work in these areas and to build profitability servicing them.”

According to Mr Carrington, this move was part of the network’s five-year plan to reduce the number of members but improve the quality and professionalism of those remaining, and follows several months of management and senior management changes within PTFS.

Over the past few years, the number of appointed representatives has gone from 700 at the end of 2011 to just under 400.

Adviser Tweet

@Norse “The PTFS decision to remove 16 firms is harsh but logical. It is possible to service low-value clients, but given the choice, why would you? In reality all of the networks should have a clear-out to maintain profit and reduce risk.”