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PosSol ditches True Potential in Avelo tech deal

Intrinsic is to move all Positive Solutions partners away from True Potential adviser software onto the Avelo adviser front, middle and back office technology.

In June, Money Marketing revealed Intrinsic was to buy PosSol and that the technology deal with True Potential was under review. All Intrinsic advisers currently use Avelo.

A communication sent by PosSol chief executive Peter Coleman to partners this morning states that advisers will migrate across to Avelo for all new business whilst some elements will continue to be run via TP until full migration is completed.

Coleman says: “I’m extremely pleased to announce our plans to move onto the Avelo Workbench technology platform.

“Following migration, you will write all new business on the Avelo platform whilst those areas that are being updated – client valuations, portfolio management, commission payments and post allocation – will continue to be provided by TP.”

PosSol is set to begin a staged roll out of the Avelo technology in December and January.

All PosSol partners have used TP technology since 2007 following a deal struck between former PosSol parent Aegon and PosSol founder David Harrison.

PosSol also uses TP technology for its head office as well as collecting and administering fees and commissions.

TP senior partner Daniel Harrison says: “This has nothing to do with the excellence of one piece of software over another.  The PS contract was a unique venture put together in 2007, since when both companies have changed dramatically, both in comparative size, and in focus of activity. 

”For example at the start of the contract, which is entirely paid on turnover, the PS commission and fees turnover was £112m, that has now reduced to an annualised £62m, whereas TP commission and fees received has increased from £0m in 2007 to £210m over the last 12 months.

”Clearly if we had been relying on one organisation and one source of business to ensure our success we would have paid a heavy price. 

“Intrinsic are pursuing a distribution consolidation strategy so it makes sense for them to use the software they already use, and convert fewer people into it, than have a bigger disruption, and we wish them well with this process and will help them during the transition.”

TP says it has made a £3.6m profit for the first nine months of the year, an increase of 44 per cent from the same period in 2012.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. As a TP user i have been totally underwhelmed by the poor service provided which has been getting worse in recent months (if that was possible!).

    I am concerned the writing is on the wall and i hope this new PS link with avelo will result in some seamless software being built in order to make migration simple.

    As soon as they do we will be moving!

  2. This can only be good news – a positive for all of us at PS !!

  3. PS users may not be quite so overjoyed with the move to Avelo once they see the issues created by the migration

  4. @Georjosh

    On the surface I agree but it’s not that simple.

    We moved to Sesame because PS was going doing the proverbial and we did not want to go direct. This was on the back of XPLAN as the demo looked great. Let me tell you it isn’t in fact I go further to say our experience has been awful. Ironically, Avelo was our original system before we moved to PS (pre Aegon when the systems were far better). I suspect that you will end up with XPLAN – if you run a mortgage practice it’s OK but for a quality wealth management system it is rubbish!

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