Firm's £100m fund to compensate its clients

NORTH East wealth management firm True Potential has set aside £100m to compensate clients that could have been negatively impacted by the transfer of their investments.

- TOM KEIGHLEY Business writer [e-mail]

The Tyneside wealthtech business is also the subject of a Financial Conduct Authority review known as a section 166, led by an expert third party.

True Potential has made the huge sum available for clients who were transferred to its platform and funds in deals struck with independent financial advisers who were offered up to a reported 8% of client assets.

The chief executive of True Potential Wealth Management, Steve Hutton, said the firm had not always given clients adequate information about the movement of their investments to the Newburn-based business.

True Potential had used the mechanism, known as direct offers, to encourage independent financial advisers to bring their clients to its platform.