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Changes help grow Fairstone Group

Changes help grow Fairstone Group

Regulatory changes such as the MMR and pensions freedoms have helped Fairstone Group achieve organic growth over the past year.

According to chief executive Lee Hartley, the Newcastle-based firm created a subsidiary to take advantage of the opportunities created in the workplace pensions sector earlier this year.

Called Fairstone Corporate Solutions, which began trading early in 2015 following the creation of the Fairstone Pensions Trust, this has offered what Mr Hartley called “an effective, high-quality and low-cost auto-enrolment solution to employers of all sizes”.

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Also, on the back of the MMR, the group established a dedicated mortgage business in the latter part of 2014, which started trading in the first half of 2015 once authorised by the FCA. This business trades as Fairstone Mortgage Solutions.

Mr Hartley said: “The past financial year has been successful, and we are looking at an exciting future for Fairstone. Our business is well placed to take advantage of the regulatory changes within the markets in which we operate, and this provides an impressive backdrop to our business plan.”

BACKGROUND

Fairstone Group’s financial results for 2014 revealed a 29 per cent increase in revenues to £17.4m, and a 42.5 per cent improvement in underlying Ebitda performance, with losses reduced to £585,000 and 152 per cent growth in recurring income.

Also, at the end of September 2015, the group had £5bn client funds under influence, of which £2.1bn is classed as FUM. Current revenues now stand at £30m, with more than 230 financial advisers contracted within Fairstone’s regulated businesses.