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The MS One to One: Richard Adams head of Stonebridge Group

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  • 01/11/2010
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The MS One to One: Richard Adams head of Stonebridge Group
Stonebridge Group bucked the trend to become the first new network to launch in years today. Mortgage Solutions editor Victoria Hartley talks over Stonebridge's bid to get ahead of the MMR game with group boss Richard Adams.

VH: What is Stonebridge Group’s current broker offering and why launch a network?

RA: This move has been 22 years in the making, after launching in 1988 and is the next evolution for us. We established our business partnership group on M-Day and have always offered our 60 Authorised Representatives (AR) network-style services including sales development, or lead training and supervision and regulatory support. However, as a network, we have streamlined the paperwork and compliance process for our ARs. Now, what we are is far easier to define to brokers which helps with recruitment and helps us build a brand we can advertise.

VH: This is an unusual move given the trend toward network consolidation – have you learnt any lessons from other network’s mistakes?

RA: We make a profit and we don’t borrow money. We also only want advisers who provide quality volume business and we will never dilute that proposition.
It’s key for us to work closely with and know our adviser firms and we establish this bond at the recruitment stage. Stonebridge also keeps a ratio of 40 brokers to each sales manager, where other networks push numbers up to 120 and a monthly sales meeting allows firms to discuss everything from retraining to business growth or products. I know the danger with this is that brokers could feel over managed, but firms can take as much or as little help as they want with no compulsion – other than FSA-related compulsion – from us.

VH: How will day-to-day business practice change for your members?

RA: The standards and practices remain exactly the same. But to be honest, during the transition to network launch we have taken the opportunity to become Mortgage Market Review compliant. We have completed the Approved Persons requirement with the FSA and checked our advisers for non-disclosure of criminal records to pre-empt the September 12 compliance date next year.

VH: What percentage did you lose?

RA:We lost a very small number. But the ones we lost were as a result of non-disclosure of a criminal record, not the fact they had one. The non-disclosure issue is the one advisers need to take very seriously right now. Don’t lie, just be clear and transparent.

VH: Did all your partners come across to join the network?

RA: All of those in a position to did and we took the vast majority across.

VH: Which networks did your ARs belong to before – how did you get them all across in time?

RA: All of the networks and it’s been a big upheaval, but we’re there now. The ease or difficulty of the process is all down to the contract with the existing network, but then we managed the notice period, did the paperwork and eased our members across. Networks run into problems when they get a mass influx of brokers after other networks have failed, whereas we only recruit numbers we can manage.

VH: How tough was the FSA approval process?

RA: It took three months after starting in July and to be honest, the FSA handled it swiftly and efficiently. The regulator didn’t ask anything silly and the whole process was pretty reasonable.

VH: How did you sell your network proposition to the brokers you recruited?

RA: Added-value. We do more for our brokers. Our driver is to help advisers make a success of their own business and there are no added cost because we take a percentage, so if a broker doesn’t perform, neither do we.

 

 

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