LESS than a month after going into administration, Money Quest, a Scottish mortgage advice firm, has risen from the ashes to trade as a new business which aims to expand into other areas of financial advice.
Simon Jackson, who has more than 20 years experience in financial services, including stints at Egg, the online bank, and HSBC, has been appointed managing director of the firm which has a new head office in Bath Street, Glasgow.
Money Quest UK, w
hich provided telephone and online mortgage advice, was acquired by an investment consortium led by Paul Gratton, former chief executive of Egg, in March.
But Gratton, who took up the role of executive chairman, and his new management team said they had not been aware of the level of debt Money Quest UK has accumulated. They were also badly hit by the downturn in the mortgage market in May and June.
The firm was put into administration in July and a new business, Money Quest Mortgage Brokers, was set-up.
About 35 of the original staff have been made redundant, the Edinburgh office has been closed and the firm now has 70 employees. Jackson said: "We have created a new, stable business without that much debt and now we want to grow as the mortgage market recovers this year. We will then look at other areas of financial advice."
He added that mortgage lenders have not lost confidence in dealing with the Money Quest brand despite the collapse of the original firm last month.
Jackson wants Money Quest to be the "premier direct advice firm" in the UK, covering a range of areas, including pensions, wealth management and mortgages over the telephone and online.
Money Quest UK was originally set-up in Glasgow in 1989 by brothers Steve and Derek Pollard.
When it was acquired by Gratton, the Pollards left, but their managing director, Paul Reynolds, remained. Reynolds resigned after the new firm was established last month to pursue other interests.
The full article contains 337 words and appears in Scotland On Sunday newspaper.
