In an interview with Mortgage Strategy Hogarth, one of the founders of the support services group, voiced his concerns over the concept of appointed representative status.
Hogarth says: “I am worried about people joining networks because they are attracted by the price and think they have found a safe home. They will get themselves into trouble if the networks have tried to do it on the cheap – one IFA network went bust earlier this year. If this happens members go down with the network and are stigmatised.”
He adds: “I am concerned about networks offering free membership as part of a land grab. In the contract ARs sign, the network probably has the potential to put fees up as they see fit.”
But Network Data managing director Richard Griffiths says: “This has long been Bankhall's stance as it wants advisers to go directly authorised.”