Is your network right for you?

Advisers talk to Maria Merricks about why they decided to join their network.

By choosing the right network, members can expect a long a fruitful relationship and a wide range of support and guidance.

The wrong choice, however, can be a costly mistake: not just financially, but in terms of regulation.

So when it comes to picking the best solution, where do you start?

One size does not fit all

Firstly, it is important to remember one size does not fit all. A proposition which might be ideal for one adviser may seem overbearing for another.

Take for example Brian Jones, managing director at Jones Hill. When he was looking to switch networks from IN Partnership just over a year ago, he wanted one with the same robust risk mitigation attitudes as he had.

Paradigm’s offering caught his eye: unlike others Jones had looked into, the network ensured 100% pre-sale file checks. Its service level agreement added to its attraction, promising 24 hours for new business and 48 hours for resubmissions.

“From my experience, most networks will do a file check every few months and then sample only one or two. All very well, but a lot can happen in a few months,” said Jones.

“Paradigm makes sure we dot the Is and cross the Ts. It is like having someone looking over your shoulder, making sure all the business you are writing is good quality. It has been a real learning experience.”

Such constant checks could well be too much for some advisers, however.

Proving them wrong

Mark Cooper, director at Clarity Financial Planning, is one example. Before joining the Financial network in February 2010, he felt his national IFA did not treat him with enough respect.

“I found the assumption was that we were all crooks and cheats and we had to prove them wrong. With Financial, we are treated from the point of view we are not going to do things wrong, so it is up to us to prove them right,” he said.

Around one in five of Cooper’s files are checked and the network conducts an annual compliance visit. Members also receive weekly compliance updates; a feature Cooper is particularly keen on considering the abundance of FSA updates.

“That is the reason I joined a network,” he said.” They take care of the FSA, the formalities and the day to day compliance, while I get on with running my business.”

Starting anew

The hassle of compliance attracted Paul Mabon, partner at Brookdale Independent Financial Planning, to the Sense network.

Despite a 16 year history as an IFA, Mabon left the advice side of the industry six years ago to work for a provider. When he returned last year to set up his own firm, he was conscious of the fact he had been out for the industry for such a long time.

He knew he needed robust compliance support and came to the conclusion Sense network held this a higher priority than others he had seen.

Importantly for Mabon, it had to be a personalised proposition. His own business provides a boutique service, advising a small number of clients, and it was this approach he looked for in a network.