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.”