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Home of Choice to reveal LSL as buyer tomorrow

According to a source close to the deal, LSL is the preferred bidder and has been supported by both the bank and the Home of Choice board.

The source added the proposed deal is currently waiting for approval from the FSA and should be confirmed tomorrow.

In a statement released today, Home of Choice said it is to undertake a series of roadshows this week to inform its brokers about the new owner of Home of Choice and the impact on fees, pipeline and authorisations.

It said: "Home of Choice is warning its brokers not to be fooled by the promises of other networks of speedy reauthorisation by setting up a series of roadshows taking place beginning Wednesday around the UK.

"The roadshows will give information about the new owner of HoC, fees, pipeline, and authorisations."

Meanwhile HoC said it had informed all its third party relationship partners over the weekend of the new owner.

Partners and brokers are being told business should be submitted as usual following the period of uncertainty last week.

Gerry O'Brien, chief executive of HoC, said: "Tomorrow I expect to be telling our brokers about the new listed owner who will bring financial security to the network.

"Their questions about backdated fees, commission and pipeline will also be answered. The business is working furiously behind the scenes to ensure that brokers are properly supported during these challenging times and I thank everyone – staff, brokers and third parties - who are solidly behind the continuation of this great business."

Meanwhile, according to the source, the Money Group's managing director Tony Murtagh also placed a bid for the business but did not receive support from the board.

It is believed Mr Murtagh did not guarantee Transfer of Undertakings Regulations (Tupe) rights for staff.

LSL on the other hand is understood to have apparently agreed to Tupe rights and to cover the back log commission for advisers and confirmed that all payments will be protected.