Head of network, Mark Graves (pictured), said while Pink had not increased its broker fees, it had identified a number of advisers who were not writing business full time. Graves said the networks would be increasing charges for these brokers in order to ensure they contributed “their fair share”.
The network reviews its costs in July each year, but Graves did not confirm when Pink would be raising its fees.
He said: “In analysing its business this year Pink has identified that there are a minority of individuals who are writing little or no business and are not working full time. We do not think that it’s fair that the more successful advisers should be subsidising those who are writing very little.
“Therefore, in order to be fair, we are increasing the charges for these individuals to ensure that they contribute their fair share to the running costs of the business. We are still trying to accommodate the people in the network who are not writing business full time but this clearly comes at a cost. The majority of Pink members will not be affected by this rise and see this as a positive move.”
Earlier this year, the Financial Conduct Authority proposed a minimum broker fee hike of 8.4%, raising the lowest fee payable by a firm from £1,000 to £1,084. However, with a new levy to undertake consumer buy-to-let costing £350, combined with additional undisclosed and unclear charges, AMI chief executive Robert Sinclair said firms were likely to see their bills rise by far more.
