Networks should have to account for members' monies
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I read with interest David Copland’s recent 60 Seconds interview (Mortgage Strategy September 7) on the vulnerability of some networks, as well as Gary Watts’ star letter (Mortgage Strategy September 14), in which he introduced the term dinosaur in respect of some networks.
The crux of brokers’ justifiable concern is when a network or club goes bust without paying fees or commissions earned in good faith by members.
Should networks and clubs not be obliged to account for monies owed in the same way as solicitors are?
Crediting funds to dedicated client accounts may help to protect the monies that belong to members in the event of a network or club going bust.
This would stop these organisations using members’ funds to subsidise their cash flows.
Of course, some clubs already minimise risk by paying fees at exchange but that may be too simple.
Charles Harsnape
MD
Mortgages By Phone
