IFA Millfield Partnership is introducing a share scheme aimed at encouraging new advisers to join while rewarding existing RIs.
The scheme, set under the brand Adviserco, aims to allocate new and existing advisers with shares linked to a points-based system, rewarding individuals on turnover, qualifications and the performance of the Millfield Group as a whole.
Five million shares will be issued and divided between the partnership's existing 372 advisers and new joiners on an ongoing basis until March 2004.
New joiners will be entitled to a significantly bigger allocation than existing advisers. This will represent 7 per cent of total shares in issue.
Each adviser's points will be totalled in March 2006 followed by a six-month coolingoff period. Advisers will not be allowed to sell their shares until March 2008.
Millfield is keeping precise details of the scheme under wraps.
Answering fears that existing advisers may be unhappy about new joiners getting a bigger allocation than existing RIs, chief executive Paul Tebbutt says: “The weighting of the share scheme was voted on by the board of advisers within the company who agree it will be profitable for everyone.
“This represents the only true stakeholder scheme in the country. Millfield advisers and employees already own 54 per cent of the group's equity – Adviserco will enhance this figure.”