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.