A new year offers everybody the opportunity to draw a line under what they have or haven’t achieved throughout the previous year – a fresh start or new beginning you might say. It also provides the perfect opportunity to step back and review what we do, how we do it and who we do it with.
Network Data Holdings managing director, Richard Griffiths, recently reported that 2007 saw a net increase of 420 appointed representative (AR) firms which equated to a rise of 14.3 per cent.
A very healthy increase you might say. However, this was not the most surprising statistic offered in his article.
Griffiths went on to say that based on the number of firms regulated for mortgage business, there is almost an equal split between AR’s and directly authorised (DA) firms.
However surprising, it is testament to the ever increasing range of services that networks offer.
Fundamental advantages
One of the most fundamental advantages of being an AR is the support that an AR gets from its network.
ARs in my network that have been DA have told me that the main reason they became an AR is because as a DA they felt isolated and felt they had to ‘muddle through’ the regulated minefield.
As an AR they have access to training and support which provide them with more time to run their business their way.
If you are a DA who is looking to become an AR it’s important you do your research and pick your partner carefully.
Don’t just look at procuration fees and commission levels, talk to other ARs in that network, talk to their business development managers as you may be surprised at how the levels of support offered by networks vary.
Here are some tips when looking at networks:
Compliance
As a DA, compliance support can be expensive and its not always there when you need it most.
The best networks offer compliance support that is not restrictive but is instead a pragmatic and realistic interpretation of the regulator’s guidelines. It should also have ‘Treating Customers Fairly’ implemented throughout its regime.
Ask your network what practical steps it takes to keep you compliant, how often will it visit you, what will be discussed at these meetings, what training and development it offers, how it will help and support you to grow your business.
Mortgages
Does the network offer access to the whole of market? Does it have a team of experts to help you? Will you have access to commercial, overseas and lifetime panels?
Protection
Does the network you are thinking of joining offer a limited panel? Even if it does this is no bad thing, but you need to be sure that the products offered by this limited panel are comprehensive and competitive.
Does the network offer a sourcing tool for accessing and submitting protection policies? How and when does it pay commissions?
Value added benefits
These services are often what differentiate one network from another. They can provide you with an additional income stream.
Track record
Is it a network with experience and a proven track record? There is no better time to reconsider your options, but spend the time to review carefully, as the choice of business partner really can have a profound impact on your business.
