Networks certainly face challenges but with the right structures in place will still remain a force in the mortgage industry, said Richard Adams managing director of Stonebridge Group.
Adams said: “There have been a number of networks making changes to their adviser fees lately and from the outside it looks like they are subsidising their preparations for the Retail Distribution Review (RDR) by hitting advisers in the pocket.
“Aside from the fact that many advisers are having to deal with the effects of reduced volumes on their business, the introduction of new legislation and processes such as the RDR and the Mortgage Market Review, this should be a time when networks provide extra support and advice and should not be looking to take advantage of their ARs by hiking fees.”
Adams said that monthly fees also can prove problematic to brokers, and that networks need to avoid changing fee structures to ensure stability in the industry.
“Networks that constantly chop and change may find they need to merge or be subsumed by competitors, but those with a competitive and quality-driven model have a solid platform to build on for the foreseeable future.
“We’re proud of the fact that our charging structure is completely transparent and has remained unchanged for eight years. This means our appointed representatives (ARs) can plan and budget effectively for the future without having to worry about us moving the goalposts further down the line.”
