The provider says it will make a one-off payment equivalent to £4 for every £1,000 invested after 12 months of the auto enrolment schemes set up remaining in place, being suitable and regular contributions being made by the client, to help contribute to advice costs.
The solution offers employees the ability to make extra pension contributions through their mobile phone or AndroidWear smart watches. Called ImpulseSave, the technology was launched in March for platform investors and is now being rolled out for True Potential’s auto-enrolment solution, available both through its own channels or through advisers. True Potential reports some individuals who have decided to channel savings from giving up smoking into pension or Isa making regular payments equivalent to the cost of a packet of cigarettes. Users pay a one-off charge of 3 per cent for ad hoc contributions, which are paid to the adviser.
The proposition comes with five risk-rated default fund offerings, with charges ranging from 0.71 to 0.74 per cent, that uses Legal & General Investment Management funds, as well as access to 30 funds that exceed the charge.
True Potential managing partner Daniel Harrison says: “This is good news for advisers seeking to access the AE market, 22 per cent of which already use True Potential’s services. They now have a unique proposition to offer their clients and senior business manager prospects who are staring at a staging date and are not sure what to do next. We are offering advisers a one-off profit share payment* from True Potential, equivalent to £4 for every £1,000 invested after 12 months of the auto-enrolment schemes they set up. This is a share of True Potential profits paid to adviser direct from the firm. It is not a commission payment nor paid for by the client.
“We are confident that this is an AE proposition that works for businesses, employees and advisers. We like to think of it as ‘Auto enrolment on auto pilot’.”
Finance & Technology Research Centre director Ian McKenna says: “What differentiates this proposition from other auto-enrolment suppliers is the way in which scheme members can interact with the service. Each individual member has access to their own information and investments via mobile apps which can operate on a range of devices.”
