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Prestbury offers Brain franchises

Prestbury is setting up a franchised distribution operation called Moneybrain alongside its present appointed representative network.

It is offering franchises based on 120 postcode regions, with costs from 5,000 to 25,000.

Advisers will trade under the Moneybrain banner and will be ARs of Prestbury, which will retain 20 per cent of income.

Prestbury chief executive Lee Birkett says the model was designed with the likely outcome of the RDR in mind. He says: “I went on record last year stating that 70 per cent of IFAs should stick to the sale of low-risk, must-have mortgage and general insurance products and that the FSA should permit the introduction of a low-risk savings product to the mortgage and insurance distribution arena, thereby considerably bridging the UK savings gap. The RDR does exactly that.”

Moneybrain advisers will have whole of market access to low-risk mortgage and insurance products via the Prestbury electronic platform.

Prestbury’s half-year results to April 30 show a slight reduction in turnover from 4.8m to 4.6m. Profits rose from 928,000 to 960,000 compared with the same period last year with margins up from 19.2 per cent to 21 per cent.

Birkett says: “Earlier this year, the FSA published damning findings of flaws within the current regulatory framework, stating that following its recent review of the mortgage market, only 41 per cent of small firms could be deemed to be treating customers fairly.

“It is highly unlikely that most small firms will be able to satisfy the FSA’s TCF wish list. Prestbury does so with a team of six dedicated solely to compliance.”

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