Prestbury Financial is predicting a 40-50 per cent reduction in the headcount in the financial services industry by the end of the year due to a big number of mortgage and protection brokers disappearing from the market.
Prestbury believes these changes will allow major consolidation in the sector and it wants appointed representatives of its new IFA network Solution Network to take advantage of the opportunities for acquisition and growth.
The group has launched a new charging and commission structure at a cost of £1m ahead of its bid for FSA registration.
The reorganisation has involved appointing regional compliance staff and setting up training and compliance and continuous professional development programmes.
Appointed representative firms will pay £100 per firm a month in addition to £50 per RI plus another £50 a month for compliance software. Charges for professional indemnity ins-urance and Financial Services Compensation Scheme and Financial Ombudsman Service fees are still to be confirmed.
Under new FSA guidelines, firms must have “one controll-ing principal” so IFAs which are members of Solution Network will do all their protection and mortgage business thr-ough Prestbury's own mortgage and protection clubs.