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Intermediary must decide future model

We are seeing a lot of headlines advising intermediaries about what they should do and how they should position their business models in future.

Since one lender said it was amending its directly authorised fee scale, I’ve heard people talk about networks being the only route to a sustainable model.

I totally disagree, but not for the reasons you may think. Having worked on both the distribution and manufacturing side of the market, I have seen all models in operation – good, bad and average.

So which model is best – a network, directly authorised, or national? The answer is that none can offer a better long-term proposition than the others 100% of the time.

Thankfully, we do not live in a one-size-fits-all market.

It should be left to individual intermediaries to make that call, based on the full facts of each model’s individual propositions and their own business needs.

Scaremongering and bluff should not form part of a sales pitch.

What is needed is clear, transparent information about all the propositions in relation to ongoing support, proposition, adviser costs and financial stability, and the decision should be left to the intermediary.

All models have their place as long as they are well run, structurally sound and, where needed, well capitalised.

Let the intermediary make their choice based on fact, not fluff.



Marketwatch – June 2012

My colleague Andrew Montlake is taking a well deserved holiday this week.

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