The recent announcement that Tenet was closing its network and moving its mortgage and protection firms to LSL Property Services following 30 years in the business will have marked a pivotal day for its AR firms.
Even with the move, the news may well have left many ARs considering their future as they weigh up the impact on business models, and assess whether the change in circumstances is one with which they are on board.
On a broader level, such changes within the network sector may also have raised questions among other AR firms about where their business is heading and whether they are happy with their current network or indeed, if they are DA, their current authorised status.
Weighing up the options and reassessing the direction your business and career are heading in is always important, particularly in today’s somewhat subdued purchase market. Plans and priorities change and there are always opportunities available to evolve and expand business models as well as enhance your own knowledge to create more opportunities for future growth.
As September marks the start of a new academic year and a return to school for thousands of students up and down the country, now could also be a good time for advisory firms to go back to ‘school’ and re-evaluate their offering, including their authorisation status, and how that fits in with their future plans.
Obviously, there is no wrong or right answer, each firm has different needs and priorities, so it is important to weigh up how each authorisation status fits with your business model and goals for the future, especially with regards to education and meeting regulatory requirements.
One of the most obvious benefits of being part of a network is firms are provided with a more hands-on approach to compliance, training and education. This can help save time and money when choosing the best and most appropriate courses and qualifications for their advisers’ needs, particularly those looking to upskill and train in other areas of the financial services sector, such as protection and general insurance.
Of course, the autonomy of being a directly authorised firm means there is a host of options to choose from, some of which may not be offered within a network’s remit. However, ensuring all advisers are up to speed in terms of education and training will also require a great deal of time, investment and organisation on behalf of the DA firm, so weighing up the pros and cons of each approach is crucial.
While becoming an AR and part of a larger network will also help firms ease some of the burden associated with meeting regulatory and compliance requirements, it is important to remember there will be a cost associated with that in terms of membership fees.
Similarly, being a DA means there will be financial considerations associated with ensuring the appropriate governance and regulatory oversight systems are in place in order to guarantee ongoing compliance with FCA regulatory requirements.
Obviously, there is a raft of support and benefits that firms can gain from both networks and clubs/distributors. The choice of whether they go down the AR or DA route will depend on the individual needs and circumstances of their business, particularly in terms of the financial benefits each route may offer.
Choosing the model that is best for you will require great consideration. Whatever the outcome, it’s important to make the most of all the opportunities presented in today’s market by looking at ways to maximise revenue across multiple opportunities and increase market knowledge in those areas.
Whether this means having access to a wide variety of sectors, providers and products such as protection, general insurance or specialist mortgage finance, or greater support meeting regulatory demands, doing the groundwork and planning ahead will stand you in good stead for the future.
Amanda Wilson is a Director of The Right Mortgage & Protection Network and The Right DA Club