National IFA Positive Solutions is setting up a incentive scheme financed by parent company Aegon which could see advisers share in a pool of £28m.
The company has attacked the schemes of rival IFAs, describing them as “weasel-worded incentive schemes, most of which have failed dismally”.
The Prophitshare scheme is available to existing Positive Solution IFAs and new joiners and was launched at a conference at the Celtic Manor hotel near Newport last week.
IFAs must hit a basic threshold of £50,000 gross production in a 12-month period. The amount earned over this will translate into a proportionate share of the company profit pool. The £28m figure will apply if the company hits its business plan targets. The overall pool figure will be more if the business plan is exceeded and less if it is not.
Each adviser will receive a “share” for each pound earned over £50,000, with Positive Solutions estimating that each share could be worth around 54p for every pound over that target.
It says an adviser bringing in £100,000 could receive an extra £54,000 in additional income.
Chief executive David Harrison says: “Our sector is awash with absurdly complex weasel-worded incentive schemes, most of which have failed dismally. Prophitshare will do exactly what it says on the tin. As a company, we actually make money and we have a track record of paying out. We reckon that past performance can be a good predictor of the future. We made money when market conditions were poor so we expect to make money as conditions improve.”