As the commissions now stand, there are four levels: bronze level (for those with a turnover of £30,000 and under) with no retention on advertised rates for mortgage and general insurance and 20 per cent retention on investments, protection and medical; silver level (over £30,000 to £60,000) with a 15 per cent retention on investments, protection and medical; a gold level (£60,000 to £100,000) with 12.5 per cent retention on the same products; and also a platinum level with negotiated rates.
As of 1 August the commission levels will change for bronze members where there will be 20 per cent retention on all products.
One concerned Personal Touch AR member who contacted Mortgage Introducer warned that, as the commission levels are reviewed on a quarterly basis, this will cause several problems as some firms could be sliding up and down the scale during the course of the year if they are on the boundaries.
"If they then bank £9,000 as a bronze member, all of which is proc fees, they will only receive £7,500, then get moved up to silver again. If they bank £6,000 again, next quarter they would go down to bronze."
"Personal Touch is basically railroading small companies to join larger firms in the network or leave, as it doesn't want small business anymore," he added.
Mike Allison, managing director of Personal Touch, said: "As we are charged by the FSA per firm we have to look at the commercial aspects. We are talking about those firms that are doing £30,000 or less a year. On balance, those at the top end of the scale are still getting the best deal in the market from a network."
