Positive Solutions has launched two schemes to recruit and reward partners and build profits leading up to a possible stock market flotation in 2010.
The partnership scheme will pay out a pot of at least £80m to be shared between qualifying Positive Solutions partners if Pos Sol reaches a value of £600m or more by 2010.
The firm hopes to grow to 2,500 advisers by this date and is encouraging its current partners to recruit on its behalf, rewarding them with windfall payments if a flotation takes place.
Pos Sol has also launched a practice buyout scheme for partners hoping to sell of part or all of their business.
It will give retiring or exiting IFAs the option of taking at least four times the annual recurring income for their practices, paid out by lump sums – 50 per cent three months from giving notice and 50 per cent 12 months after the sale takes place. Alternatively advisers can opt for a continuation of their renewal income rather than a lump sum.
The firm’s Prophitshare and B share schemes have paid out a total of £136m so far to partners and staff. It says the company, now with 1,473 advisers – 235 of whom are producing over £100,000 a year – is on track to exceed £103.6m by the end of 2006.
It has also announced plans to build its “wrap of wraps” by early 2007, which it says will be the only genuinely open architecture wrap platform in the world.
Chief executive Neil Johnson says: “We plan to grow from 1,500 partners now to 2,500 and our past results demonstrate how our business model gives us the productivity advantage to grow profits ahead of adviser numbers.”