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Personal Touch reduces charges with new structure

Personal Touch Financial Services will introduce a new fee structure for 2015, which it said was based on rewarding quality amongst its adviser member firms.

At both firm and adviser level, overall member support fees have been reduced by around 17 per cent.

The new fee calculation structure is designed to recognise firms who achieve quality standards, so that the costs of monitoring advice will sit more fairly across the network membership, Personal Touch said.

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Around two thirds of member firms will pay less overall for their membership in 2015 than they did in 2014.

The new fee structure will be implemented from 1 February, based on each firm’s quality rating and business volumes as of 31 December. The firm noted that in order to allow a smooth transition to the new structure, fees in January will be the same as in December.

The adviser support fee for any newly recruited advisers will be waived throughout 2015 to stimulate internal recruitment within adviser firms, Personal Touch said.

David Carrington, marketing director of Personal Touch, said: “The whole concept of the traditional network model has been shown to have failings in recent times, but our new strategy of ensuring the best adviser firms with high quality standards are rewarded and not forced to over-pay and subsidise others, is something we believe will provide greater clarity and fairness.

“The majority of our advisers will find their new fees are lower for next year and we will work with those that may see a small increase to improve their quality ratings and bring their fees down as quickly as possible.”