Earlier this week Network Data emailed its remaining ARs, offering them the chance to move over to LighthouseXpress, part of the Lighthouse Group. The email included a copy of the LighthouseXpress contract, which had to be signed by 5:30pm yesterday.
Chief executive Alex Cotton wrote to ARs: “We have teamed up with LighthouseXpress, who can offer you a seamless transfer to avoid any further delay in you writing business. We have secured approval from the FSA for a bulk transfer.”
Money Marketing has seen two copies of the contract, one with a 12.5 per cent rate only, and one that also includes “additional conditions” that offer a £1,250 signing on bonus, as well as incremental bonuses for ARs, offering as much as £2,500 additionally for £50,000 turnover. These bonuses demand the AR stays with LighthouseXpress for two years.
Network Data group also wrote to its Mortgage Broking Solutions Limited ARs earlier this week, informing them that their commissions will not be paid and offering them the LighthouseXpress contract also. Although Network Data has had its permission to write new business suspended by the FSA, MBSL remains fully authorised.
According to the FSA register, there are currently 370 Network Data ARs and 168 MBSL ARs.
Lighthouse chief executive Malcom Streatfield says: “We do not comment on any market rumour or speculation.”
Network Data was unavailable for comment.