The points-based scheme has been launched to reward advisers whose hard work, knowledge and expertise contribute to the long-term growth in the value of the company.
Chief executive of Positive Solutions, Neil Johnson, told the National Partners Forum in Birmingham that parent company AEGON had agreed to distribute to qualifying Partners 40 per cent of the value of Positive Solutions above a £200 million benchmark in 2010.
He said that assuming Positive Solutions was valued at £300 million, a total of £40 million would be paid out through the scheme giving the 1,300 partners already qualifying for points an average of about £30,000 each.
The pay-outs will be triggered through either a flotation in late 2009 if market conditions are favourable, or an independent valuation of the company in 2010.
Johnson said: “Positive Solutions is a unique phenomenon in the industry, not only for its determination to share value with the people who create that value, but also for delivering on those promises to the tune of millions of pounds.”
“It is obviously too early to put a figure on the exact pay-out and there are no guarantees, but as Positive Solutions embarks on a new phase of growth under Jim Reeve, there is every reason for advisers to be optimistic that their hard work and excellence will be well rewarded.”
The Partnership Scheme was launched at last year’s forum to reward advisers for generating business and recruiting new IFAs. After early success, the scheme was extended and enhanced, with more points on offer and an extended timetable.
So far 4.8 million Partnership points have been awarded with about 900 Partners qualifying for 3,000 points each by issuing £50,000 of business during the 12 months to September 27. A further 330 have qualified for 3,000 points by joining the company in the last year. More than 160 Partners have also benefited by introducing new IFAs, with 3,000 points offered for each new recruit.
Positive Solutions is on track to announce record turnover of around £125 million this year, a 27 per cent rise on 2006, and growth in its adviser base to more than 1,700.
