Mortgage and protection network Stonebridge is one of the main distributors to benefit from L&G’s step away from the appointed representative (AR) model resulting in several large AR firms joining its membership.
Of these, Crystal Clear Financial Planning and i2i, which joined in June and September respectively, had wealth advisers working with their companies alongside mortgage and protection brokers.
To secure membership of these firms, Richard Adams managing director of Stonebridge, said he needed to offer a proposition which satisfied the needs of the both the mortgage and protection advisers and the wealth advisers, a deal he described as ‘complex’.
“These firms liked our culture and wanted to join the network but understood we did not offer services for wealth advisers,” said Adams. “The deal was complex but we overcame that barrier by establishing an outlet for our ARs to refer wealth leads to.”
The wealth advisers working in Crystal Clear and i2i formed a separate company brand, Chrysalis Wealth Management.
An agreement was drawn up with Tenet Group whereby the advisers would use Tenet for investment business and Stonebridge for non-investment business.
Adams said the terms of the agreement meant that Tenet would only be providing authorisation for investment products. Chrysalis advisers are unable to sell mortgage and protection products under their Tenet permissions.
Tenet has created a tailor-made, restricted, centralised investment proposition for these firms, which it said have only been authorised in the past few months.
Tenet Group brands director Mike O’Brien said: “We are looking forward to working with these firms to offer their customers a more comprehensive product range including a lot of support to make the transition from a single provider [Legal & General] relationship.”
Adams said he hoped this agreement marked the beginning of the evolution of networks and the distribution model. “We certainly have an appetite to work with anyone to bring mutual benefit to our and any prospective partners members.”