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Broker co-operative offers advisers chance to take a stake in collective

A new broker co-operative is looking to recruit brokers that want to run their own business while taking a stake in an overarching company.

The company, which has yet to be named, will act as a broker co-operative with advisers working from home or their own office on a self-employed basis.

Rather than the share option structure offered by networks, brokers would be entitled to a shareholding in the business three to five years after joining.

More immediate benefits include 100% of all broker fees, free public indemnity insurance for the first year, free compliance for six months, free mortgage sourcing software and a weekly payment run.

The venture is the brainchild of Darren Pescod, managing director of Cambridgeshire-based firm The Mortgage Broker, which would be run separately to the new company.

He says: “Speaking to employed colleagues in the industry there is a fear that their job isn’t always safe. A lot of brokers havethought about going on their own to keep their business rewards for themselves. This is an outlet for them to consider, as opposed to paying the cost of going it alone.

“Brokers will keep ownership of their business and can become a shareholder as part of a bigger structure.”

The business is due to be launched at the beginning of June.

The move follows a similar initiative from London-based brokerage Bespoke Mortgages, and recent recruitment drives from London & Country and John Charcol.


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