For those considering leaving the profession, questions were raised around if they could still generate an income from their leads and potentially act as introducers.
Discussion participants wondered if this would still require authorisation from the Financial Conduct Authority (FCA) or if selling a website might work. Others suggested partnering with a lead referral website.
Donna Hopton, director at Cherry, said: “Perhaps it was the drop in lending volumes during 2023, or simply a desire for change, but exiting the industry was a popular thread on the Cherry forum during January. We see this as a great shame and hope that the support received through Cherry can go some way towards stemming this trend.
“On the plus side, though, we have seen new blood entering the industry, which is, to a degree, quite reassuring. The big question is how this is balancing out. The industry and consumers need more high-quality independent advice available to them – not fewer.”
The fees debate
When it came to advice fees, some said charging no fee led to more business and enquiries, saying fees sometimes deterred potential clients.
Others said charging a fee would be more financially beneficial and mean less work for the same or more money.
Hopton said: “The question of whether it’s better to charge a fee or not remains as open for debate as ever, but the bottom line is there is no correct or incorrect approach. What works for some doesn’t work for others.
“Relevant here may be the fact that we’ve seen a number of lenders recently increase their proc fees for product transfer business, which might be prompting some advisers to reassess their fee structures.”
Support from peers on Cherry
She added: “For advisers, there is no one better-placed than their peers to offer advice and help them through some of the day-to-day challenges of working within the financial services industry. Whether it’s advice on a potential career change or establishing which will be the most profitable business model, advisers on the forum typically find that someone is going through, or has gone through, something similar and is willing to offer a helping hand.
“We continue to see an increasing number of advisers turning to Cherry – perhaps seeking a feeling of community, especially now that an increasing number of intermediaries still work remotely or in a ‘hybrid’ manner.
“We look forward to continuing to offer them a place they can go for support and advice as they face the highs and lows of working within the rewarding, but sometimes demanding, world of financial services.”
