UK-based franchise mortgage advice network The Money Group (TMG) has obtained regulatory nod to house appointed representative (AR) broker firms under its brand umbrella.
Until now, the firm was required its applicants to be directly authorised (DA).
Go deeper with GlobalData
The AR license will spare the firms from securing rigorous regulatory approval in order to be part of TMG’s network.
It will also allow the company to ‘help control a significant spike in recruitment enquiries’.
TMG plans to sign up 25 AR firms to its network in a bid to double its broker headcount within 12 months.
TMG Recruitment and brand development director Dave Corbett said that the latest development is ‘crucial to our continued growth’.
Corbett said: “This network enables us to deliver tailor made offerings for firms who prefer being part of a network and it helps us facilitate that transfer without disrupting their income or the serviceability of their clients.”
TMG chief executive Martin Stewart added: “We spend a lot of time speaking with brokers from many different backgrounds and those conversations only confirmed what we already knew – many are unhappy and frustrated with the current narrow range of industry offerings.”
TMG provides training to induvial advisors and then allows them to manage their own business under its DA model.
The firm then buyout the business from these advisers when they are ready to exit their business.
Under its existing model, firms and advisers with annual revenue of minimum £250,000 can join TMG’s existing DA model.
The firm recently set up a mortgage club, called TMG Club, to deal with specialist lending options, such as bridging and commercial finance.
