Positive Solutions executive chairman David Harrison is setting up Platform, a new company he says will revolutionise the financial services market.
It will offer an administration and support technology platform to the whole of the distribution market when it launches in April.
Positive Solutions and Origen will be amongst its first clients, with the new firm aiming to have its technology used by the majority of the industry’s distributors and providers within two years.
PS’s adviser points earned under the current incentive scheme will roll over to a new program based on earning value in Platform. Shares in the new venture will also be available to all distributor companies joining, based on the value they add to the Platform.
PS is also moving to a 0 per cent retention charge for advisers producing oiver £150,000 of commission and fees.
The firm, now with almost 1,500 IFAs, has just paid out more than £9,000 each to over 800 partners that qualified for its Profitshare scheme that launched in 2004.
Harrison says: “We see distributors and providers using an even more enhanced system than we use at the moment, but on a more widespread basis and the aim is to save the financial services industry hundreds of millions of pounds in unnecessary costs.
“By making savings for both distributors and providers, it will allow the industry to get to grips with many of the issues that affect it adversely now. Once established it will increase the profitability to both parties enormously, leader to a better product and service for the UK consumer.”