View more on these topics

PosSol sheds partners in drive for quality

Positive Solutions says it lost a large number of poorly performing partners in the last quarter of the year with total partner numbers dropping from 1,662 at the end of 2008 to 1,614 at the end of 2009.

Positive Solutions says the loss of 48 partners over the year was as a result of it focusing its efforts on “high quality IFAs”. It says that despite the overall drop in numbers the firm recruited 234 partners over the year and a further 47 committed to joining.

Positive Solutions chief executive Jim Reeve says: “It is true our partner numbers have reduced during 2009 but we delivered a very strong recruitment performance in the year as 234 joined and a further 47 IFAs committed to joining us.

Reeve adds: “A large number of low producing partners left us in the last quarter as we increased our focus on supporting high quality producers. The quality of the IFA continues to be key for us. The majority of our new recruits continues to come from the directly authorised sector.”

Recommended

When will US rates rise?

By Felix Wintle, Investment Director & Head of US Equities The most recent communication from Federal Reserve chair Janet Yellen has put the market’s sights on September as the most likely month for the first rate rise. This is due to the stronger than expected economic data of late, particularly in employment and housing, which […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 18 comments at the moment, we would love to hear your opinion too.

  1. How does Pos Sol define “high producing”? Is it just those who flog lots of new stuff or does it take into account ongoing, service related recurring revenues?

    As a business matures, unless it takes on more and more people to put more and more new business on its books, it may, to an outside observer whose prime criteria in judging a firm is its new business above all else, look as though it’s becoming stale.

    Other people, though, may consider stability of revenue and client base to be at least as important. A small business can’t just go piling on new business ad infinitum ~ eventually, the servicing obligations become such that you have to slow down on the new bus front. Unless, of course, the servicing obligations are largely ignored.

    I may be doing Pos Sol a disservice, but clearly most firms’ business model is heavily weighted more towards grabbing new business than about servicing and developing what they already have on their books. On this point, I must confess to being in sympathy with the FSA’s thinking on this subject.

    But that’s just MHO ~ not gospel.

  2. I find it incredible that advisers that write the largest sales volumes are deemed “quality advisers” and those that do not are seen in some ways as less quality. In my experience the reverse can often be true as quality financial advice has absolutely nothing to do with sales output.

  3. Lost a large number of poorly performing partners? Now focusing it’s efforts on recruiting “high quality IFA’s? I reckon the one’s recently lost would have been considered “quality IFA’s” when they were reccruited by Pos Sol. The arrogance stinks.

  4. Julian makes a valid point to which I think we can all relate. The anonymous contributors seem to have formed their own opinion as to what a quality adviser is. As a PS partner for some 8 years I can say categorically that the definition quite definitely is not simply being the biggest new business producer.

  5. As a PS partner I feel it would be helpful to point out a couple of things.

    Positive Solutions has moved over the years to significantly encouraging advisers to move to review/trail based service. I have noticed a considerable change in the company over time. Internal message boards will castigate the very few who seem to be angling for advice on how to gain top buck at the expense of service.

    What this article does not make clear was whether or not the partners were asked to leave or simply decided to leave.

    As for focusing on the “high quality producers”, surely in a world where the 80/20 principle is accepted it makes absolute sense to provide more help to those that do produce the greater revenue in a compliant way. All businesses do the same.

    That said I would also struggle if it were suggested that with things like the Learning Academy and also the Partners Forums and Synergy events, all of which are free to partners that any partner, no matter what level of business they write, received less support than they would gain from other similar networks.

    Most businesses would think that shrinkage of less than 3% in the early stages of a recession was in actual fact reasonable performance. My feeling is that this is simply news made out of nothing.

  6. A Pos Sol advisers needs to do three times the work load to obtain the same level of production as a “normal” adviser. Much of their business needs to be pre submitted for approval before a formal application is submitted. Rightly or wrongly their systems are so restrictive and prescriptive. Could it be that many advisers (and non Pos Sol advisers) are just saying enough is enough? The industry is no longer viable, the regulators have killed the goose that lays the golden egg. You can load the cart with more and more regulation. The cart slows until finally the knees buckle and the old horse just falls and will not rise no matter how much more you beat him.

  7. Poorly Performing, High Producing and High Quality are not stand alone terms. The reference to Poorly performing is a reference to all areas of business not just turnover. High Quality and High Producing are the best sort of advisers to have and to aspire to be. If you aspire to be a high quality but low producing adviser, what is that? Good advice that never produces a income or return?

    Lastly and most importantly J reeve was talking as CE of PosSol, and as such was not commenting on anything other than the performance of the group as profit making entity. The merits of each and every partner within PosSol is that they are all unique and none stick to a pre planned and pre ordained structure. The resources available to a partner are all that he/she wants or not. It is a way of working and if the company has made a profit that, in this time of RDR prep, low levels of advice and feelings of disdain for the finace industry, of which we are a part in the public eye, is a good thing. It will allow advisers to work in the industry and as long as they are profitable and of good quality there is a place. If they join and slip, dont maintain CPD/Competant Status and all relative measures then they will go, as they wouyld with any company.

  8. I find it incredible that advisers that write the largest sales volumes are deemed “quality advisers” and those that do not are seen in some ways as less quality. In my experience the reverse can often be true as quality financial advice has absolutely nothing to do with sales output.

  9. Seems that if you leave Positive Solutions you are deemed to have done so because you are a poor adviser and no other reason could possibly be found?
    These comments seem unjust as there must have been others that have left for other reasons. It seems to easy to blame poor advisers, thats what everyone else does.
    Many advisers have thrown in the towel last year and more will this year.

  10. Just proves my point when I was looking for a new entitiy to join 18 momths ago. PS are unprofessional as an entity and drowning in internal problems and issues. If members know what’s good for them they should leave before the whole show becomes desperate and that they become labelled as misfits!

  11. Was it not the over complicated True Potential back office system to blame, rumour has it they are about to ditch them and develop their own.

  12. I was a Pos Sol partner who left18 months ago, and if £265k is poor production, then yes, I was a poor producer. Completely useless IT in tandem with uninspiring leadership and a board of directors who would have been better working at the Beano were the reasons I and many other top producers left in 2008/09. I am glad to see the board has changed dramatically, and I wish Pos Sol nothing but sucess with their largely mortgage based operation now. Many quality investment advisers have left in order that they can continue to operate in a well managed and compliant organisation.

  13. If you believe that what you have to say is correct, then stand up and be counted, why hide behind anonymity?

  14. I left Positive Solutions as I found a company with much better technology and fantastic support.
    I would question the actual number of ‘active’ advisers beacause there are many in my opinion who are still registered for their production figures but have already retired .
    If you look at the published figures 1662 down to 1614 = 48 but in 2009 234 joined should add up to 1848!
    I was in the top quarter and believe me there were about a 1000 advisers producing less. I focus on a quality service for my clients and didn’t have the time due at PS to do this.
    Good to hear Positive Solutions are looking for high quality advisers. Lets hope they can introduce high quality systems rather than being stuck on release 1 of TP where directly authorised are enjoying release 4!

  15. It seems to me that unless you are a PS partner, you are not really able to make a sensible comment on the systems in place today.

    Since I joined in July 2007 I have been impressed by one overriding factor and that is the constant search to improve all aspects within PS.

    Are the systems perfect, far from it, but the difference is that this is acknowledged by management and gradual, sustained improvement sought.

    A earlier comment was about “pre approval” and having to do 3 times the work, well not what I am finding Simon. There are areas where this is needed, but that is the case everywhere.

    Defining quality is impossible, but PS are giving their support to all partners who want/need to take further exams, have been proactive in encouraging those, who like me, work on over 85% recurring income and it would appear to me taking these steps whilst maintaining levels of service to partners which would be hard to match elsewhere.

    No PS is not perfect, but there again, they are solvent, well managed and looking to improve. Maybe it is pure envy when they look at the balance sheet, but our detractors seem to have lost sight of the ball in all this!

  16. The drop in numbers of 48 plus the 234 recruited during the year to replace those who had left equates to 282 leaving duing the course of the year or 17% ofthe starting figure. When put in this context the figures look far worse.

  17. Judging by feedback from colleagues, some people are a bit smothered by the overwhelming software.
    This happens to be a people business. Better to judge us by net profits, than by gross sales.

    Then according to FSA figure, we are all poor buggers.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com