During a debate at the CML conference in London last week, industry heads agreed that some networks are at risk and that the market would continue to move towards fewer, bigger firms.
Ian Andrew, managing director of intermediary sales at Nationwide, warned that rather than struggling networks being bought out by larger firms, the market will now see more networks being allowed to collapse.
He said: “I think the consolidation will be letting smaller, weaker firms go under and then others picking off the best advisers. To some extent we already see that happening now.”
In the latest Mortgage Solutions People’s Poll, 30% of brokers said they are considering moving mortgage networks, 22% have switched in the past six months, while 48% have stayed put.
Mark Screeton, distribution director at Legal & General Network insists there are key attributes which networks look for when enabling a broker to join.
“Of all the qualities that we look for in an adviser, integrity and honesty are at the top of the list,” said Screeton.
“Secondly, we look for particular skills and behaviours. We are looking for advisers who can explain things clearly, listen, record what has been agreed, and provide the necessary disclosure so that customers have the best possible understanding of exactly what they are buying, and be sure that it’s relevant to their needs.”
Screeton added that networks also look for knowledge and experience in brokers.
“Clearly, if someone has a good track record within the industry and already has the required exams, that can be very helpful. However, we also run a well-established ‘school of excellence’ that trains people, often from scratch. We believe that knowledge can be acquired, and once that gets put into practice, experience will follow.”
