View more on these topics

Clubfinance set to buy Massow’s client bank

Parliament-London-UK-Night-700x450.jpg

Discount broker and execution-only business Clubfinance is in discussions to acquire the client bank of Ivan Massow’s commission return business Paymemy.com/mission following the demise of the firm.

Clubfinance says it will be taking over the client bank and providing an alternative commission return service and is in discussions with Massow over what it will pay to take on the clients.

Clubfinance will be taking a higher fee than Massow did to provide the commission rebate service. Clubfinance will return 75 per cent of a client’s trail, and retain 25 per cent, while Massow’s service charged 20 per cent.

Clubfinance co-founder David Scrivens says: “Trail commission rebating as a stand-alone business is extremely difficult to make work, particularly if the rebate to investors is high. In the circumstances, Ivan and we believe this outcome is in the best interests of Paymemy.com’s clients.”

Massow says: “Unfortunately, running a stand-alone trail commission rebating service has proved to be unsustainable owing to growing regulatory and other costs, coupled with very tight profit margins.

“It was with a great deal of regret that we had to close the business but the numbers simply no longer added up and we were losing money every time we paid commissions to our clients.”

Last week, Ivan Massow told Money Marketing he faces personal losses of £200,000 as a result of the closure of the business. 

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I feel a bit sorry for Mr Massow. Paymemymoney.com was based on having identified a gap in the advice market, i.e. legacy policies on which no advice at all was being provided, and enabling clients to recoup a large proportion of what they were being charged for but not receiving.

    What a shame, and how typically pernicious, that the regulator had to intervene and break the business.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com