No happy ending for HoC ARs
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Appointed representatives of Home of Choice and no doubt its directors have been left shell shocked by the news today that the network is to go into administration.
As the industry mourns the loss of another network ARs are once again left in limbo waiting to hear if anything can be salvaged.
It was just five years ago that Keith Baldwin, Gerry O’Brien and Richard Coulson set out to create one of the largest mortgage networks in the market.
I remember meeting Richard soon after he had left Zurich and he couldn’t wait to launch Home of Choice. Like many, I was greeted by Richard with a friendly smile and came away from the meeting being genuinely excited for them and hoping their network plans and proposition would be successful.
On one occasion at one of their roadshows Richard spoke of his Newcastle roots and made the comparison of how his family had worked down a coal mine and how fulfilled he felt to have launched Home of Choice - a true Billy Elliot moment.
This sort of honest and likeable approach was often what made it so popular with new recruits, and worried its competitors. On one visit to its head office I was told how the police had investigated after a suspected espionage attempt, which I could well believe.
At the time Home of Choice was seen as rebelling against the other networks that were in the market at the time and standing up for the common broker.
But as Stan Lee once wrote: “With great power there must also come great responsibility”. If the directors of Home of Choice had any inkling that something was wrong ARs should have been informed immediately.
The ARs that made up Home of Choice were also decent and hardworking and through no fault of their own could now face bankruptcy.
It is not clear if the Financial Services Authority had any involvement in the deals that were being done behind closed doors, but surely the network’s lack of capital should have been highlighted in its regular visits.
ARs will find it hard to sympathise with the directors but I suspect whatever deal was being done they were under the impression it would go through without a hitch, and a happy ending for all would follow.
Understandably, comparisons have been drawn between Home of Choice and Network Data and Mortgage Times. But from some of the comments Mortgage Strategy has received it seems that there is also some sympathy for the network’s directors who have made more friends than enemies in the mortgage market.
But many ARs must be feeling at the moment that the road to hell is paved with the best intentions.
They are now left with questions that need answers and concerns for their livelihoods.
In the wake of today’s announcement unfortunately, there are no winners and no happy ending to this story.
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Readers' comments (19)
Mike Fitzgerald | 29 Apr 2010 3:24 pm
I feel for the advisers at Home of Choice, I knew quite a few of them and its sad to see that they could now be in the same state as advisers in Network Data and Mortgage Times.
It wil be interesting to see if the FSA had studied the networks capital situation.
Some brokers may join other networks and some may go direct with the FSA.However some may feel that its time to quit and the country can ill afford to lose even more independent brokers
I along with many other brokers wish these advisers all the best for the future
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Anonymous | 29 Apr 2010 3:35 pm
The only big criticism is the first batch of lies blaming the non payment on the BACS system. We are all in business and all should understand that BACS only fails if you have no funds.
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Anonymous | 29 Apr 2010 3:43 pm
The FSA need to be accountable for allowing this to happen. As some small compensation for the brokers who have lost vital funds in this, the FSA should appoint them directly authorised immediately, without the need for fees, even if only on an interim basis. Any pipeline business could be re written to show direct payments. That way at least some money can be salvaged for the AR's, and clients would not be hindered, whilst they choose the way forward. Time for the FSA to stand up and be counted, and at the same time they may just claw back a bit of respect from us brokers.
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Paul | 29 Apr 2010 3:52 pm
It is real shame when anything like this happens and from what little I know of Home of Choice they had built up a good name as good honest people and wish all their AR's successes in getting though this unfortunate situation.
LIFELINE: For individual advisors rather than larger firms the company I work for have in the last 24 hours taken on 5 advisors on an RI basis allowing them to continue with their current business by way of transfer in under a week with the longer term planning converting them to AR's so please feel free to get in contact and we will try and accommodate you. paulwaters@mapltd.co.uk
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Anonymous | 29 Apr 2010 3:56 pm
Anonymous | 29 Apr 2010 3:43 pm
"The FSA need to be accountable for allowing this to happen".
I think we need to look closer to home. False trust of key individuals, poor management and lack of communication up to the very end.
The people we trusted are the very people who let us all down.
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Anonymous | 29 Apr 2010 4:14 pm
Anon 3.56 - Agreed. However the FSA are a highly paid organisation who will happily punish a broker for somthing they regard as not being compliant so how can they allow a network with the ultimate responsibility for the livehoods of countless brokers and their families to fail so spectacularly. Why were accounts not checked? Why was the issue not flagged earler, and more importantly why do the FSA not have a contingency for this? If this was the first network to fail then there may be some understanding but it isn't. When Network Data went there should have been a plan put in to place incase the unfortunate happened again. Here we are once again and no plan, still no lessons learnt. Unfortunately the people who could have prevented, or minimised the fall out from this will once again walk away scot free whilst the innocent victims will be left to go home and tell their families there is no money and possibility of bankruptcy, IVA, loss of home etc. This cannot be fair in any way shape or form
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Pip | 29 Apr 2010 4:53 pm
I was approcahed by this net work and how they went on like they was so good i joined them and I had a issue with my refrencing and HOC took me off the road, they showed no support or understanding I was nothing but a number. I am now with a smaller but better network, am so glad I left even if it was down to circumstances
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Anonymous | 29 Apr 2010 5:23 pm
The sooner the FSA is done away with by a new government the better, as an organisation it is not fit for purpose.
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Paul McGerrigan | 29 Apr 2010 6:14 pm
Would welcome any opinions as to who is the most financially stable network in the industry?
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AR of Home of Choice | 29 Apr 2010 6:23 pm
To Natalie Martin
Is Richard Coulson paying you or something to give him so much good press? He's just been part of a directorship which has failed and left 100's of brokers with no money and no livelihood.
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