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AR option is favourite as the regulator gets tough

Considering the compliance avalanche descending on advisers in the shape of a reinvigorated Financial Services Authority along with the likely results of the Mortgage Market Review, I believe the pendulum has swung towards favouring brokers who opt for appointed representative status rather than being directly authorised.

For firms trying to concentrate on business development, on the DA side they are going to have to spend even more time and money on proactive compliance services to keep up with hands-on regulation from the FSA while having less time to focus on transacting client business.

So the dice are loaded against smaller DA firms and with the burden about to get even heavier the cost of just trying to keep up with the regulator is bound to make the AR route even more attractive.

Advisers want to maximise their time in front of customers and good networks provide them with that sort of business environment

Advisers want to maximise their time in front of clients and good networks provide them with that sort of environment.

The recent spate of bad news concerning networks going bust reflects one positive outcome. Networks have gone through the ultimate stress test because of the recession and the weak and those whose business plans could not adapt to the changing landscape have become extinct.

But the networks that did adapt are stronger for being tested and have proved themselves capable of providing the kind of business development and compliance support intermediaries will need in the years to come if they want to concentrate on doing what they do best – writing good quality, compliant business in a fertile and supportive environment.

CHRIS TANNER
MANAGING DIRECTOR
HL PARTNERSHIP

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