The Intermediary – July 2025 - Flipbook - Page 71
B RO K E R B U S I N E S S
Opinion
Not all networks
are created equal
T
here’s a saying I saw the
other day in another
network’s recruitment
e-mail: ‘Is the grass
greener?’ It made
me laugh, because it
reminded me of something my mum
used to say: “Doesn’t maer how
green the grass is, you still need a
lawnmower to cut it.” And honestly,
that’s the crux of it when it comes to
network membership.
I’ve been in this business long
enough to know that what’s on the
brochure, e-mail or advert is rarely
the full story. So if you’re directly
authoriased (DA) thinking about
becoming an appointed representative
(AR), or an AR thinking about
switching networks, let’s talk honestly
about what really maers, and what
might be hiding in the neles.
A lot of networks are very good at
shouting about what they offer, but
too oen they’re shouting about the
basics. Things that any decent service
provider should be doing anyway, such
as compliance support, systems access,
maybe a shiny welcome pack.
What they oen fail to mention is
what happens if or when you want to
leave. You won’t usually hear upfront
that your pipeline will be frozen
for three months. Or that you’ll be
charged for something called ‘run-off
PI cover’, which doesn’t even apply
to firms trading under a network’s
umbrella. Or that exit fees are
structured in a way that makes you
wonder if anyone’s read the relevant
law. If an exit fee isn’t a genuine
reflection of loss, then what is it? A
penalty for changing your mind?
That’s not the only place networks
can make money off firms in ways
that aren’t obvious. There’s a long
list of costs that are oen buried in
the small print: technology access,
system licences, compliance file check
charges, marketing levies, ongoing
‘support’ charges that don’t always
translate into support, and uplis on
PI or Financial Conduct Authority
(FCA) contributions. Firms may be
told ‘no monthly fees’, but are rarely
given a clear annual figure. Oen
what they end up paying is stitched
together from five or six smaller,
labelled costs.
It’s death by a thousand line items,
and new firms in particular are the
ones that get caught out.That’s why
reading the full contract maers.
What happens when you leave? How
long is your pipeline frozen for? Are
you locked in for 12 months even if
the service is poor? Is the commission
you’ve earned yours, or subject to a
clawback you didn’t expect? And if
the network changes the contract
mid-term, do you have any right to
walk away without being fined? These
are questions you deserve answers to
before you sign, not when it’s too late.
Then there’s the issue of loaded
premiums. Some networks push
firms – subtly or not so subtly – to
put clients on inflated protection
or insurance premiums in order to
hit network revenue targets. Others
limit your ability to offer commission
sacrifice or rebate to the client which,
under Consumer Duty, seems very
hard to justify.
Day one support
If you want to do the right thing
for your customer but find yourself
blocked by your network’s commercial
arrangements, then something’s gone
wrong. Yet this is rarely mentioned in
the recruitment conversation.
We’ve also seen some worrying
trends around commission structures.
I was told recently, ‘We pay 100% of
the first-year premium in protection
commission.’ Sounds great, unless
someone mentions that providers pay
200% of first year premium, with a
two- or four-year clawback period.
No monthly fees? That’s nice.
But what about annual ones? Or
onboarding costs? Or network
charges that kick in only once you’re
AMANDA WILSON
is strategy and development
director at The Right Mortgage
& Protection Network
commied? Selling the dream and
slipping in the fine print later isn’t
business, it’s a trap.
We do things differently. Not
because it’s a flavour of the month but
because we started this network with
one goal: put advisers first. Aer years
in the sector, we learned what worked
and what didn’t.
We made a choice to never sell
out, especially to a corporate, to
treat advisers as customers — not just
numbers – and to build systems and
services that support real growth, not
control it.
When people say we are a cradleto-grave proposition, they’re right.
We support advisers from day one,
through career progression, all the
way to retirement, with real planning,
real conversations, and a clear exit
path that doesn’t punish them for
moving on when the time’s right.
The firms that thrive in our network
do so because they feel supported,
respected, and trusted. They’re not
afraid of asking tough questions, and
neither are we in answering them.
So, if you’re being courted by
a network promising the world,
ask what happens if you decide it’s
not right. Ask about exit terms,
pipeline rules, PI cover, commission
restrictions, premium structures, and
the actual cost of doing business. Ask
to speak to firms already inside and
find out what it’s really like.
If you don’t get the answers you
want and need, then just message
me. I’ll tell you straight. Because
not all networks are created equal,
and choosing the wrong one
could cost you far more than just
your independence. ●
July 2025 | The Intermediary
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