274 ARs left networks in last three months
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More than 270 appointed representatives have left networks in the past three months, figures from the Financial Services Authority’s register reveal.
There were 8,736 ARs in the market at the end of Q3 2009. Of the 681 that moved on during the quarter only 407 joined other networks, leaving a net loss of 274.
Home of Choice saw the biggest decline after losing 36 and gaining 14, a net loss of 22.
Sesame retained its position as the top network but still saw a fall of seven ARs, losing 46 and gaining 39. Openwork recorded the biggest net gain, with 56 ARs joining and only 19 leaving.
But Paul Day, director of Which Network who compiled the table exclusively for Mortgage Strategy, says the way the FSA presents its information could make some aspects of the table inaccurate. He says: “I am waiting for a response from the FSA regarding the entry and removal of approved AR firms on the register. For example, Mortgage Broking Services Limited is still shown as authorised and having 168 AR firms despite the fact that many of these brokers also appear as authorised with other principal firms.”
Day would like to see the regulator register brokers individually rather than listing firms. He adds: “The FSA has this information but chooses not to publish it. From an industry perspective, if individuals as well as ARs were listed we would get a truer picture of the movements of advisers. “This would not only change the dynamic of the top 30 networks but also give a more accurate picture of change in the industry.” Gerry O’Brien, chief executive officer of Home of Choice, says: “We are delighted with our performance in 2009. We expect to see all networks losing ARs as many fail to meet financial regulatory requirements or show the skills needed to diversify.
“But we have seen a rise in productivity which we expect to continue in 2010. This is a far more important measure of success in the current market.”
