Two former John Charcol brokers have launched Quotes4Charity CIC, the first financial services’ Community Interest Company.
CICs are limited companies created for the use of people who want to use the profits of a business or other activity for community benefit, and not purely for private advantage.
This is achieved by a ‘community interest test’ and ‘asset lock’, which ensures that the CIC is established for community purposes and the assets and profits are dedicated to these purposes.
Former John Charcol colleagues John Mulkerrin and Kevin Macadam, along with fellow director Geraldine Mulkerrin, hope to broker mortgages, life cover and insurance products for charity.
Macadam expects payments to charity for an average mortgage of £100,000 to be around £100, which means the list of charities looking to engage in partnership with the firm will be large.
Macadam says: “We have a completely new proposition for clients to consider, and an exciting pipeline of products to roll out.
“With 57% of the adult population donating regularly to charity, and a whole of market mortgage service, I’m confident we’ll attract a favourable response.
“Our model allows us to build a first class range of products and services, and deliver what should develop into substantial amounts of much needed income for charities.
“We have started talking to brokers about working with us, and the combination of a market competitive package and directly generating large sums for charity could prove attractive to many in financial services.”
John Hanlon, the government appointed CIC regulator, and himself a previous mortgage regulator for the MCCB, adds: “CICs give an opportunity to people in the community to trade for the community’s benefit.
“The asset lock that CICS have gives public reassurance that all money generated, or donated will be used for community benefit, and the reporting requirements will show the public at large just what has been achieved by the money generated during the year.”