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Displaced look to jump on True Potential bandwagon

The firm’s senior partner said a focus on developing innovative ways to improve the adviser-client relationship had paid off with numerous displaced bank advisers joining the company.

True Potential increased turnover by 145 per cent to £12m in the first six months, compared to the same period in 2012.

It also posted a £2.5m pre-tax profit, up 56 per cent year-on-year. He said: “The RDR has presented a huge challenge to our industry, but it was a challenge we were prepared for and we are delighted to be able to post such impressive year-to-date results.

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“Seeing our pre-tax profits rise by 56 per cent is especially pleasing in the current economic climate and it shows that the right business plan and an extremely talented team can achieve outstanding results.”

He also predicted “considerable further growth” for the rest of the year.

Assets on the firm’s wealth management platform also rose by 250 per cent to £1.4bn, compared to the first six months of last year.

Earl Glasgow, a fellow senior partner at the firm, previously revealed that adviser numbers at the firm had jumped by 285 per cent over the past year.

Adviser comment

Philip Milton, managing director of Devon-based Philip J Milton & Company, said: “We were looking for a new adviser recently, and there was a lot of interest from former bank advisers, so I’m not surprised that True Potential has taken so many on. However, in my experience, many of them had high earning expectations, based on selling the wrong types of stuff, and not from building long-term relationships with clients.”

Background
True Potential has a hybrid model, which allows advisers to choose between independent and restricted status. It has made a virtue of the exodus of advisers from the banking sector, with Mr Glasgow previously saying the industry should help “orphaned” advisers as much as clients post-RDR. The firm claims it provides technology and business support to 22 per cent of the total advisory market.