The Property Franchise Group (TPFG) has bought an insurance brokerage as it executes a plan to create a large new in-house financial services subsidiary.
TPFG, which operates six franchised-based estate agency brands including Martin & Co and hybrid Ewemove, has bought a 72% stake in Chichester firm Auxilium Partnership Limited, a mortgage payment protection advisory business for intermediaries.
Auxilium Partnership was launched in March 2019 by Mark Graves, who is to become TPFG’s Financial Services Director, which will not be a board position within the company.
Graves has a 30-year track record in the financial services sector and his company is FCA regulated.
TPFG says it will now seek to acquire more companies for its new division, which will enable TPFG to provide its franchisees with the opportunity to offer mortgage, insurance and other financial services products to its customers.
The company currently provides customers with mortgage advice and products through partner firm L&C, and TPFG has not revealed whether this deal is likely to continue.
But this seems unlikely given that TPFG says it plans to offer franchisees a separate financial services brand, back office systems, a supply of “whole of market” mortgage products and a compliance function, to be known as the Aux Group.
“We are delighted to welcome Mark to the Group as Financial Services Director,” says Ian Wilson, CEO of The Property Franchise Group.
“His industry credentials are top drawer, and he has both the contacts and commercial acumen to help us identify the winners as we scale our broker network.
“With the knowledge that protection assurance sales are key in bringing about improved operating margins for brokers, we are very pleased to have a protection advisory business joining us as our first financial services acquisition.”