CompaniesNov 21 2014

True Potential offers discounts to directly authorised advisers

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Network True Potential has been waiving fees for directly authorised advisers if they put client money onto its platform.

According to business terms with the Newcastle upon Tyne-based firm, there is a 4 per cent charge for services, which will be deducted from DA’s for platform business.

True Potential senior partner Daniel Harrison said: “We provide a range of services to DA firms - these include technology, client servicing tools, post collection, valuations and commission/fee collection.

“In return for this, we charge 4 per cent of all commissions and fees generated.”

He said that because the platform makes 40bps from investments held, the firm decided not to charge 4 per cent fees to our client firms for any fees generated through the platform.

Mr Harrison said: “This is because of the automation, and also because we do not want to ‘double charge’ for something that we’ve already been paid for.”

True Potential provides live valuation feeds for more than 2.2m private clients, giving them access to their portfolios by the web, iPhone, iPad and Android devices.

Earlier this month Mr Harrison said the company had changed the focus of its recruitment strategy focusing on directly authorised advisers, claiming there was “fragmentation” in the market and DAs were being under-serviced.

Figures from IMAS Corporate Finance showed recruitment at True Potential to have risen from 406 in October to 409 so far in November.

Background

The True Potential group was set up in 2007 by David Harrison.

Now with 409 approved people, it has won a number of awards.

The company, which offers business support and a wealth platform of investment options, claims to work with 22 per cent of the IFA market.