Discussions are underway at Alliance & Leicester after frustrated networks were told their members would be treated as individuals, rather than as part of a network.
Ian McIver, managing director at The Whitechurch Network, was told that, come regulation, each member of the network would have to pass a certain number of cases a year to carry on doing business with A&L.
McIver says: “I can understand this business model pre-regulation but once people have joined a network it can't work like that. If A&L is going to do business with one member of a network, it would have to do it for all members. This is very odd. It would be fine if people were acting independently because obviously A&L wants to pass a certain amount of business.”
Trouble could arise if certain network members were to be refused the opportunity to do business with A&L while others members were passed.
Sally Lauder, spokeswoman for A&L, says: “Each broker will have to register with us, regardless of its size. At the moment A&L is talking to each network separately.
“Nothing has been formally been decided yet.”