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Non-aligned licensee sells stake to mortgage company

Mortgage aggregator and brokerage Finsure has taken a “major stake” in a non-institutional financial planning dealer group with 200 authorised representatives.

Finsure announced it is acquiring an unspecified stake in licensee Spectrum Wealth Advisers, following its acquisition of Mortgage Choice’s LoanKit business last year.

“Our combination with LoanKit has moved us into the top 10 brokerages in Australia with a loan book of almost $7 billion and we will be building on that to break into the top five within the next five years,” said managing director John Kolenda in a statement.

“The addition of Spectrum Wealth Advisers makes Finsure one of very few aggregators with a stake in a privately owned dealer group,” he said.

According to the statement, Spectrum Wealth “boasts more than 200 authorised representatives” and the acquisition will allow its brokers to “offer customers broader financial solutions, including life insurance and investment advice”.

Mr Kolenda called the move an example of the company “expanding horizontally” and said there would be options for mortgage brokers to be trained to provide personal financial advice services as well as more traditional referral opportunities.

Finsure is one of a number of companies listed under the banner of private equity firm Appleyard Capital, along with licensee Custom Wealth Solutions, which recently entered receivership.