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UKSolicitorJA, Solicitor
Category: UK Employment Law
Satisfied Customers: 4312
Experience:  solicitor
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My wife has been working as a self employed mortgage advisor

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My wife has been working as a self employed mortgage advisor for some years. Most recently she has been working under the umbrella of a national firm who undertook all her compliance matters and supplied paperwork etc. Commission was split 65% to 35% in my wife's favour. Her business has suffered very badly in the recession and she has produced little work. The firm paid the FSA fees on my wife's behalf and she recompensed them monthly from her commission. The firm have written to her terminating their agreement and asking for a £1800 refund of a years FSA fees. This makes no allowance for the £450 she has paid them this year. As the firm terminated the contract mid year after presumably paying the FSA fee up front who should stand the cost of the FSA fees from the date of termination onwards?

The answer to your question would lie in what was agreed between your wife and the national firm, if there is no provision in her contract with the firm saying that she must refund the FSA fees on termination of the contract, then she does not need to pay them anything.

If there is such a provision on the other hand, then she has to pay them the fees (less the £450 already paid).

Hope this helps. Please leave feedback
UKSolicitorJA and 2 other UK Employment Law Specialists are ready to help you
Customer: replied 4 years ago.

my wife signed a contract in August last year and one of the clauses was that any fees that the firm paid in advance would be treated as a debt owed to the firm by my wife. Subsequently she had a letter from the firm( dated January 2013) saying that that the FSA fees have increased and were now £150 pcm. There is nothing to say that fees are still to be paid 12 months at a time, in advance; Does this reduce my wife's commitment to the £150 pcm stated?

Unfortunately not, the clause in the contract that says any fees paid in advance would be treated as a debt is the problem and your wife would need to repay the money I am afraid and try and claim it back from the FSA directly.

All the best