Too many networks “treat their members as a commodity” one broker has complained, with others detailing several issues that come with joining a network.
When asked if brokers were happy with their current networks and what they should be aware of before choosing one, New Leaf managing director, Daniel Hobbs alleged that once a network’s members are “used up”, they are “thrown away in the trash and replaced”.
Hobbs said this means there is “no room” for the new adviser to start a business, either, as profits are chased first to satisfy the shareholders.
Additional issues with brokers’ networks were identified by Barnsdale Financial Management financial adviser, Scott Taylor-Barr, pointing to the “ever-rising” costs of professional indemnity insurance and the upcoming implementation of consumer duty.
Changing networks was also mentioned by brokers, with R3 Mortgages founder and director, Riz Malik, saying that “the gravity of changing networks was not lost on me, and it caused many restless nights”.
To address some of these issues, Finanze Property managing director, Imogen Sporle, said: “I think a positive change that could be made across all networks is for there to be ongoing support.”
Sporle explained there should be “someone you can call if you have a case you are struggling to place or want further training in certain areas”.
She further detailed that some brokers join the industry with little experience and that having this support behind them would be “useful.”
Though the responses pointed to some issues with networks, there was also positivity as Malik also stated: “Fortunately, my decision proved to be the right one.
“The level of assistance and support I’ve received has been outstanding, with a sincere concern for both me and the growth of my business.”
Taylor- Barr shared a similar sentiment, saying: “This year I certainly feel that I’m getting value for money from the arrangement and am more than happy with the systems and support that I get.”
Alfa Mortgages founder, Adam Smith, said that his network are easy to get hold of and along with and “they are forward-thinking, allowing you to be entrepreneurial whilst remaining compliant”.
tom.dunstan@ft.com
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