Former Paymentshield marketing director Gareth Riding is setting up a general insurance firm which he says will keep on paying trail commission to advisers when they retire.
Riding, son of Paymentshield joint founder Richard Riding, says the company is likely to start trading early next year. It will offer a similar product range to Paymentshield, which was sold to Towergate earlier this month, selling mortgage payment protection insurance and buildings and contents insurance. It has yet to create a brand name.
Riding is also setting up an action group for disaffected Paymentshield brokers which aims to recover thousands of pounds in lost commission after the provider ceased paying trail commission last month to intermediaries who are no longer regulated to sell mortgage-related general insurance. The action group is finalising agreements with an unnamed law firm to take on claims from the estimated 1,500 affected agents.
Riding says: “We have always toyed with the idea of starting a new company and it would be difficult for my father to do it but me and my brother and some key individuals will. We cannot let Paymentshield sit back and do this to its agents.
“It is heartbreaking to see the reputation of a fantastic company like Paymentshield being dragged through the mud.”
Paymentshield sales and marketing director Chris Traynor says: “Remuneration is not just about introducing a client, it is about managing the relationship.”