Positive Solutions has unveiled plans to try and build up profits ahead of a possible stockmarket flotation in 2010.
At its annual National Partner Forum in Birmingham, Positive Solutions, the IFA firm owned by insurer Aegon, announced to over 1,300 advisers its plans for a “Partnership Scheme” and a “Relax: Practice Buyout” scheme.
The firm says the two new schemes are designed to recruit and reward their partners, in a bid to meet the planned expansion of the firm from its current 1,500 partners to over 2,500.
In the ‘Partnership Scheme’, Positive Solutions says a fund of at least £80m which will be shared out among the IFA partners providing the company reaches a value of £600m or more by 2010.
It says it will reward existing partners who meet key business objectives with 1,000 points, with a further 3,000 points if they recruit a new partner on top of the current incentives. And if the company manages to achieve a valuation of £660m by 2010, then each 1,000 points will be worth at least £10,000 from the £80m central fund.
In addition, the firm says it has introduced the ‘Relax: Practice Buyout’ scheme which it says will reward partners at retirement by giving them a choice of either taking a renewal income, opting for a lump sum four times the size of the recurring income, or a combination of the two.
Neil Johnson, chief executive of Positive Solutions, says its success has been built on recruiting and retaining the best advisers in the industry, and that these two new schemes will help this to continue by giving advisers a "clear and lucrative exit strategy".
He adds: “We plan to grow from 1,500 partners now to 2,500 and our past results demonstrate how our own business model gives us the productivity advantage to grow profits ahead of adviser numbers.”
“We have set tough but achievable targets and all those joining us know exactly the size and scale of the potential rewards on offer,” adds Johnson.
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