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True Potential offers new share deal to advisers

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True Potential has revealed details of its share plan which will offer advisers an escalating level of shares depending on the amount of assets placed on its Wealth Platform by February 2013, with a 50 per cent share unit uplift on assets placed by March 20, 2012.

Previously, firms received a standard 10,000 share units for joining TP while the firm decided how best to structure its share scheme. The deal will be back-dated to take account of any assets placed on the platform since it launched in March 2011.

The number of shares received before the uplift ranges from 100,000, for £1.2m of assets placed, up to 10m for investments of £15m or above. Those investing £16m will get 10m units plus an increment of 1m units per £1m of additional assets.

The 50 per cent uplift is available on assets placed by March 20. Those who invest after that date will still receive shares with no uplift up until 28 February, 2013.

The offer note to advisers states: “Nobody knows what value these units will hold, if any. It may be that we never reach a point where there is sufficient interest in us either as a trade purchase or as a public offering, in which case our value will simply be our profitability.  However you are effectively in the same situation as the founders and other partners in True Potential, who clearly believe that what we are all doing has great value in the market and will help revolutionise the way wealth management is brought to the UK consumer in the future.”

“It’s important to note that when we offered shares in a previous company we owned there were those, at head office as well as in the field, who didn’t completely share our beliefs and confidence and therefore did not make the most of the opportunity.  However over 800 did, and between them shared £136,000,000 in cash when our last firm was sold, with the top adviser netting £1,300,000.  There are no guarantees in life, however we believe there is great synergy in doing the right thing for your client, which in turn creates value for all to share.”

True Potential says the deal will mean between 10 per cent and 20 per cent of the company will be owned by advisers.

True Potential senior partner Daniel Harrison says: “We wanted to try and reward those advisers who have shown faith is TP by placing money with us since we started and this is a way of doing that.”

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Readers' comments (22)

  • And may I ask, whose money is it that these TP advisers are investing in the TP Platform?! Is there not a rather large 'conflict of interest' issue here? I would like to see the disclosure being given to clients about the TP platform being in the clients best interest. Come on FSA, do you not have something to say?

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  • Harrison said the same when he was in control of Positive Solutions. The carrot then was when you joined PS you were entitled to 3000 units, and each other adviser you encouraged to join you doubled this. Needless to say that was the carrot that took me to PS . That scheme came to nothing, and although the theory is there, when Harrison sells True Potential this dream will go down the swanny. Wonder what his next company will be called Positive Potential, or True Solutions.

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  • Sorry can you clarify what the conflict of interest is here?? these are notational units that may or may not actually be worth anything. Any decent firm would do their due diligence to ensure that whatever platform/wrap being recommended is the most suitable for the client. Are you suggesting that a client would be disadvantaged if they are being recommended to invest within this?

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  • I was at PS also. What you are saying is a blatant lie. The true facts are that when PS was sold, over 800 advisers shared over £130m between, them and I personally know one who got over £1.3m. So please give credit where it's due, the one person in the industry who has done this sort of thing, and shared it with others is David. Of course you had to do a minimum level of production to qualify.

    Finally, I have no doubt that TP would have thought about conflicts of interest before launch, they are a pretty experienced bunch over there.

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  • Sean,

    Im slightly concerned if you cant see the obvious COI here. Yes due dilligence may have been done but i think you'll find that most TP advisers will use the due dilligence undertaken by TP Platform before setting up the platform as their "get out clause" there - and guess what the due dilligence says....thats right, that the TP platform is the right product in certain circumstances and beats many others.

    Money on the platform increases revenue and profit, this in turn up-lifts the share price, hoping for a nice profit on exit.

    Who wouldnt be tempted - after all if you held substantial shares in Sainsburys - wouldnt you be tempted to shop there, and recommend it to everyone else as well?

    I hope your not a compliance officer, or worse....and FSA employee. !!

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  • Dear Me. The same old cynical people on here I see. If you are not complaining about the FSA, your moaning about others, possibly getting something you are not.

    Jealousy is a bad feeling. Try to think positive!

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  • This faceless person who goes by the name of anonymous- You are correct that 800 advisers had a share in the one and only payout. I unfortunately joined in the second traunch. I was sold a pup by David. and you are incorrect in stating that you needed to do a minimum level of production.

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  • I smell not a little jealousy in some of the comments on here and it is far from becoming

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  • Don,

    Valid point, we do like a moan about the regulator and others - however as someone in compliance i was just baffled by Seans possibly naive comment.

    Trust me in this instance the green eyed monster is not at home.

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  • This is all just too much like amway and the utility warehouse.

    I am a TP user but dont use the platform and it just doesnt shape up yet.

    When and if it does i will use it but anyone who has done their own DD and not just pressed the button to upload the TP supplied dd will know this.

    I only hope as a TP user i dont get dragged into the mix when the FSA do come knocking.......

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