Making that all important network decision

Martin Davis, CEO of Openwork, looks at the factors that influence advisers when selecting a network

Industry momentum surrounding the RDR has gathered obvious pace in recent weeks, with advisers considering their futures, networks honing their strategies and start-up businesses making late entries into the adviser space.

It is, of course, a testing time for many advisers, most of whom must now make a decision – or a series of decisions – that could ultimately prove significant in defining their working lives. The RDR may be the catalyst for much of the uncertainty but, with the final rules confirmed in line with expectations, it also defines the criteria by which advisers must make their decision about if, how and where they continue to do business.

What to ask of a network

What is abundantly clear for networks is that under the RDR, scale and financial strength will assume even greater significance. The corollary is that advisers, when deciding which support provider offers them the best home, must ask which networks have both strength and size; which networks are able to grow; and which networks can offer them, personally, the best possible support to enable their businesses to prosper in the post-RDR world. In terms of that single decision, all other considerations are largely immaterial.

Needless to say, I would not encourage advisers to pose those questions if I thought Openwork would fall short in providing its own answers. Indeed, the fact that we have recruited more than 320 advisers so far this year, with a strong pipeline of businesses seeking to join us, speaks for itself.

However, like all networks, we are not immune to adviser turnover, particularly at a time when providers in this space are actively targeting rival adviser bases in their efforts to achieve critical mass. Our vision, in terms of broadening our proposition, implementing a platform, acquiring greater IFA capability, and restructuring and growing our business, is very clear. These plans will remain in place irrespective of what happens elsewhere in other networks.

Distracting market noise

Over the coming months, sector activity will undoubtedly intensify and market noise will increase in volume. Distracting as this undoubtedly is for some advisers, I would counsel them to focus squarely on their own needs and aspirations, both in the short and long term. Market chatter is one thing; making a business decision that could prove highly significant over the coming months and years is quite another.