True Potential  

True Potential aims to grow in-house advice arm

True Potential aims to grow in-house advice arm
Daniel Harrison, chief executive of True Potential

The chief executive of True Potential has said he expects to grow the proportion of the company's clients advised by its in-house advisers.

True Potential currently offers in-house advice to 8 per cent of its clients but also runs a network made up of nearly 1,000 firms and provides a range of back office services to directly authorised advisers.

Daniel Harrison said True Potential was keen to help these advisers retire by buying their clients and growing the proportion of its client base which it advises directly.

He said: "The average age of our wealth management partners is 57 and the average age of the directly authorised advisers is 59.

"This generation will have to retire and we are not bringing in enough new blood into the industry.

"I think we offer a really valuable place for advisers to have their last career and I would like that career to be for years and years to come."

But he said True Potential was interested in buying clients from them when they decide to retire and he said the company was looking to expand its in-house adviser numbers to cater for this.

Harrison said: "We have got eight advisers at the moment and we got them up to their Level 4 qualifications.

"I think this time next year it will be double that.

"I would much prefer upskilling our own staff than bringing in outsiders. I like getting people into True Potential and finding out what they are good at."

Harrison said True Potential preferred to buy on a client-by-client basis rather than buying entire books of clients.

He said: "We have some advisers who say 'all my income is coming from my clients' so when we acquire some of their clients they are using that as a bit of a capital event for themselves and using that as an excuse to find new clients again.

"The client is fully aware of what is happening. We get a chance to speak to them up front."

In September True Potential, which was founded in 2007, was bought by private equity firm Cinven for an undisclosed sum.

Addressing the company's plans following the deal, Harrison said: "There is nothing revolutionary in there. It is about building upon growth. This year we will do about £6.4bn in sales and next year it is to repeat that."