Home of Choice has accused networks that offer appointed representatives money to join of using the in- centive to mask deficient business propositions.
Speaking at a recent HoC roadshow Gerry O’Brien, managing director of HoC, says: “Some networks have tie-in agreements of three, six and 12 months, and ARs have to give the network notice if they want to leave.
“While some networks offer ARs money to join, this is because they have fundamentally deficient propositions. It’s something that was done a lot in the 1990s.”
O’Brien says this may result in questions being raised over whether ARs are being treated fairly.
He adds: “Offering money to get ARs to join networks is dead as a strategy.”
Mortgage Next provides ARs with a disturbance allowance to help overcome the financial strain of severing contracts with principals.
It analyses ARs’ contracts and provides an allowance of up to £25,000 per AR to ensure the transition pro- cess does not leave them at a financial disadvantage.
Justine Tomlinson, marketing director at Mortgage Next, says the scheme is intended to help brokers and make sure that they don’t lose out on any insurance commission that is owed to them.
She says: “One of the biggest problems intermediaries face is networks threatening to cut off their insurance commissions if they leave. This makes it difficult for them to transfer. We are trying to help in this regard.”
HoC also announced that it will shortly be adding Norwich Union to its life panel, taking its number of providers to five. The others providers are Friends Provident, Legal & General, Scottish Provident and Bright Grey.