Positive Solutions admits its new network model has not been as popular with its partners as expected but says it is on target to recruit 100 firms by the end of next year.
PosSol revealed in January it was to restructure its pricing model to operate as a network and a national to offer more choice to members. In May, it said it expected at least 70 partners to become members of the new model but now says less than 10 per cent of the 100 Positive Practices will come from the current PosSol membership.
Chief executive Jim Reeve says the new model has been designed to support groups of individual IFAs who want to come together as a single firm to offer a whole of market service to their clients.
Reeve says: “I see the number of actual firms practising after the RDR increasing as sole traders join each other to offer a range of services to the clients they serve.”
“Our current model of advisers are guys who like to operate as individuals and are happy in that model. We see this network as something where we can bring new business in and look to other networks as well as directly authorised guys to move across.”
Positive Practices is available to adviser firms with two or more IFAs and a turnover of £150,000 although start-up businesses will be able to agree bespoke terms. The pricing of the new model has not been disclosed but the firm says it will depend on how each firm is structured.
Firms that become members of the network will also have access to the True Potential Wealth platform as part of PosSol’s partnership with True Potential
PosSol’s 2010 results revealed 360 advisers left the firm last year as adviser numbers fell from 1614 to 1254. The company made a loss of £1.6m compared with £6.9m the previous year.