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Positive Solutions reviewing True Potential technology deal

Pearson-Richard-PosSol-2013
PosSol chief operating officer Richard Pearson

Positive Solutions says it is reviewing its adviser technology after parent company Aegon sold the business to Intrinsic last week.

Currently the firm uses True Potential’s front, middle and back office software throughout the business in a deal struck between Aegon and PosSol founder David Harrison in 2007.

PosSol uses the TP technology for all adviser software, its head office as well as collecting and administering all fees and commissions from PosSol partners.

The current deal is subject to a rolling 12-month notice period meaning any changes in technology will be implemented a year after any decision is made.

True Potential senior partner David Harrison says: “Any changes in the arrangement will obviously be made by the new parent company Intrinsic and we await the outcome of any conversations.”

Positive Solutions chief operating officer Richard Pearson says: “We have been reviewing technology over a period of months and any decision about technology will be made once the Intrinsic deal completes.” 

A frequently asked questions document sent to Positive Solutions staff on the day of the acquisition said: ”In the longer-term we will work with Intrinsic to review our processes and technology, in order to identify potential areas for improvement.”

Pearson added that PosSol could not guarantee there would be no redundancies as a result of the Intrinsic acquisition.

He said: “You could never give those assurances to anyone and neither could any business irrespective of whether it has been bought.”

The frequently asked questions document also said lease agreements on regional offices would be reviewed when due for renewal, hinting at some consolidation. 

It said: “Advisers in both businesses operate out of multiple locations which will be considered in the detailed planning process.”

The Intrinsic acquisition is expected to be completed in Q3 this year. No decisions have yet been made about board changes.

Despite the deal, Pearson does not envisage many advisers moving between PosSol and Intrinsic.

“The two businesses are relatively separate entities and I would not expect many advisers to be moving between the two.”

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Is this the beginning of the end for True Potential?

  2. Stephen McDine 17th June 2013 at 5:25 pm

    TP , with their platform are more profitable than Pos Sol anyway, and with a low cost base and around 23% of IFA market cant see it making a huge difference, in fact I would expect to see advisers leaving Pos Sol/intrinsic for a direct auth route for more assurance, lower costs, and keep the TP technology. Whos to say Intrinsic wont want to embrace the TP system? Either way I would not want the job of novation all clients and policies!!

  3. Call me sceptical Stephen Dine but would you happen to be signed up the TP incentive share scheme?

    You know the one whereby TP incentivises user to place clients on their platform……?

  4. Anon

    You wouldn’t be called Peter Coleman or Richard Pearson would you?

    Just wondering why you would a) make a silly statement about TP and then b) try and belittle Stephen?

    Anyway, last accounts for TP that I saw had the company making a pretty good profit – not sure how much of that comes from PS, but bearing in mind their publicly quoted bad results I doubt it’s much. I’m assuming they may be ok!

  5. @ Stephen McDine – “23% of IFA market”

    Have you missed a decimal point there dear boy?!

  6. Short memories – Leopards – spots.

  7. As a PS IFA partner. I get cold called every month for the past 5 years by TP. Why should I move to TP when TP recuiters tell lies etc about PS is going bust, ( accounts time ), PS numbers are falling etc. Is is year after year Everyone thier has shares in the business. In a couple of years time – the biz will be sold and then what will happen to the advisers there. Its the last place I would look at – when I move from PS. The TP system will be dumped by PS. I’m 99.99% certain

  8. This will be a huge blow to TP.

  9. Stephen – I doubt anyone would leave pos sols to become directly authorised. We all say things to back up our decisions. Here’s my question would a client prefer to deal with an adviser with a large organisation behind them or a one man band? Nothing stated about whether pos sol will stop using tp anyway, although when tp put on a free drinks night on the same night ps are having their conference it smacks of desperation from tp.

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