As head of a network I am, again in the world according to Mr Wyles, accused of being deeply sceptical of products which push the envelope because of the perceived regulatory risks that come with them.
I will, for the point of this blog, write as if Mr Wyles truly believes this as opposed to simply coming up with a sound bite and make the following point: that is a load of nonsense.
Mr Wyles suggests that intermediaries embrace innovation – and when he says innovation I assume he means Castle Trust’s Partnership mortgage – whereas the networks are not willing to countenance their AR advisers recommending this, or any other so-called ‘innovative’ product because it comes with too much potential regulatory baggage.
Firstly, I find it odd that a representative of a product provider or lender, would publicly chastise a group of firms that could be a significant distribution arm for their product. If he is frustrated at the take-up of advisers recommending his products, perhaps he should look at the product first and whether it is truly suitable for clients.
As a network we have a specific regulatory responsibility for our advisers and of course this means we carefully review the product recommendations our ARs are making. However, we do not simply say ‘no can do’ to advisers recommending products which are not vanilla – if we did we would soon find our ARs looking elsewhere.
Wyles is probably speaking under the misapprehension that we are inundated everyday with requests from our AR firms and advisers pleading with us to allow them to offer Castle Trust’s Partnership mortgage. Let me assure him this isn’t the case however if our ARs see a demand for this product, and they are willing to achieve the designated qualification required to advise on it, then we are not going to stand in their way.
If the product is innovative – great. However the more pressing concern is whether it is suitable, right for the client and we can back that recommendation up. This does not make networks’ frightened children, it makes us responsible adults.
Richard Adams is managing director of Stonebridge Group
