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Lighthouse hires recruitment team as adviser numbers fall

Lighthouse has hired seven recruitment managers to try and boost adviser numbers as its membership is expected to fall 23 per cent from 713 in January to 550 at the end of the year.

The group’s interim accounts, published this week, show the firm made a £59,000 pre-tax profit for the six months ending 30 June compared with a £2.4m loss in the first six months of 2011.

The accounts show a 15 per cent drop in adviser numbers from 713 to 608.

Speaking to Money Marketing, chief executive Malcolm Streatfield says the drop is due to the closure of the Financial Services Advice and Support brand, which saw 75 advisers leave instead of joining the Lighthouse network.

Streatfield adds a further 59 advisers have decided to leave the industry post-RDR.

He says: “We have got 59 advisers who are saying they are not doing the exams. That will leave us trading at around 550 come the start of next year.”

The firm has this month hired seven recruitment managers in an effort to boost numbers to around 650 by the end of 2013.

Streatfield says the company has “work to do” to repair its relationship with shareholders after it lost a shareholder vote to delist from Aim in August.

Streatfield says: “Clearly following the delisting proposal we have to hold our hands up and say we were not communicating as effectively with shareholders as we should have done.”

The Lighthouse accounts show the firm has agreed with the FSA that its regulated subsidiaries will not pay any more dividends to shareholders without prior consent from the regulator, due to historic liabilities.

Lighthouse paid out a £345,000 final dividend in June from its cash reserves, which currently stand at £10.6m.

PMI Independent Financial Advisers director John Stewart says: “Lighthouse portrayed itself in a negative light through the attempted delisting and will struggle to bring in 100 advisers as a result.”


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. you are having a laugh????? SEVEN at what cost is that? This is a complete joke. Have they learnt nothing about spending money wisely. I have seen recruitment managers come and go in my firm and they rarely cover their own cost. Yet again Lighthouse have got it wrong. Hiring SEVEN recruitment managers will not undo the recent bad press and negativity. It needs to come from the top. Advisers will not suddenly miraculously bounce up and appear from other networks / firms etc

  2. Recruiting an additional 100 advisers in to the firm is by no means unrealistic. That said; I still believe the problem with many of the networks is that their recruitment strategies are outdated, and lack ‘Recruitment’ experience and know-how. In my opinion; unless Lighthouse have hired true ‘Recruitment Professionals’ with first class ‘Recruitment’ experience, and NOT just ex-financial advisors, or recruitment managers from competitors; I believe it could be a failed exercise. Let’s wait and see. . .

  3. The pitch being offered by these managers is not a true relflection of what is happening within the core company. Recruiters are paid to recruit, what they say falls way short of what is actually available at Lighthouse. The group has to seriously re-examine what it offers and to look after the advisers it has already

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