Choosing a new network is an important decision and one that can’t be made lightly. From the fee structure and compliance support to commissions and training. There’s a lot to consider.
We think the hardest part of your decision is knowing what to expect when you’re actually part of the network; so we’ve highlighted some considerations that you may want to find out if you’re considering making a change.
Tips for choosing a new network:
General
- Does the network have a parent company or controlling influence?
- Considering the overall network model i.e. charging, running costs and number of staff, is it sustainable?
- What are the network’s objectives, what does it believe in and where do their priorities lie?
- Are the clauses in your contract fair if you were to leave the network?
Service standards and support
- What’s the escalation process if you’re having problems or queries – who is there to help?
- Will your firm have dedicated field support?
- What support is given for training new and existing advisers?
Compliance
- Is there any deviation from the networks standard sales process for individual firms if it’s for the right reasons?
- What input can you give to new procedures, propositions and interpretation of the FCA guidelines? And how does the network measure the success of these?
Fee structure and on going commission
- If you’ve been given a list of procuration fees, are there any further deductions? Is it transparent?
- What do the monthly fees include? i.e. PI, FCA fees, Compliance support etc.
- What does your PI cover and what is your excess liability?
Systems and technology
- Does the network offer choice for sourcing products and does the back office system integrate with any other useful tools?
- Does the back office system reflect the sales process efficiently?
- How much time does it take to input, record and process business? Can you test the system before you make a decision.
What do you look for when researching a new network?
If you can think of any other questions that may be helpful for firms that are currently selecting a new network, then please comment below.
There’s nothing about your proposition that seems more attractive than any other network. Everyone that contacts me says exactly the same thing. £150 per month per advisor is not competitive, it is the going rate. Legal &General for example do not charge, you must use their insurance products and no one else’s, but their products are usually competitive so no real hardship.
I do wish you success as I believe the industry needs more choice but I for one will not be paying those prices.
Kind Regards,
Ken Robson.
Hi Ken
Thank you for taking time to read our article and for your comment.
All networks have different charging structures, it’s just a case of finding out which one suits you best. More than anything when you’re part of a network you have to feel like you’re getting value for what you pay for, therefore we believe it’s also important to look at the overall network offering, level of support and other services they offer you to ensure that it’s right for your business.
All the best
The Right Mortgage