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HoC ARs plan meeting in Yorkshire next week  

 Rob Downham, an appointed representative of Home of Choice and principal of Simplicity Financial Services is arranging a meeting for ARs of Home of Choice in Wetherby next week.

Downham, his brother and some other HoC ARs are getting together to try and get answers to many of the questions that HOC brokers will be thinking:
 
–         What if I go bust?

–         How would the FSA view that?

–         Will I get any commission due?

–         How quickly can I do business again and with who?

–         What happens to clawbacks?

–         What about mortgages I have just submitted?

 

He has arranged a meeting at the Ramada in Wetherby at 10am

Downham says: “Next Tuesday 29 April and would encourage all HOC brokers from the region to attend so that it can all try and get through this difficult time together and in the best possible way.”
 

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  • Emma Tempset 2nd May 2010 at 11:12 pm

    I have spoken with some of HOCs directors today and there is good news coming thats for sure.

    The guys wont let us down if it can be helped that i do know, its all very frustrating however I have faith in HOC even now, and what a great network they have been, its the only hiccup i have had in four years.

  • Simon Kershaw 30th April 2010 at 1:29 pm

    HOC ARs have got a difficult time ahead of them and what they do right now is crucial. Think about the following.

    Make a written claim to the administrator detailing all monies owing. Do this every week. What this does is create a notional asset against which any liabilities may be offset.

    Liabilities might be unpaid regulatory fees, PI premiums etc – check your contracts. Importantly liabilities may also include any clawbacks on insurance or assurance policy lapses.

    You do need to relise that it is highly unlikely that you will ever get your money back from a liquidator as you rank as very lowly unsecured creditors. Once the taxman, the bank and the liquidators fees have come off the rest is chump change.

    Be aware that the administrator will try to sell on YOUR client bank and renewals. Talk to your clients, tell them what is happening and ask their support.

    Earning a living. Although the networks will be all over you trying to sign you up you need to think hard about what this experience can teach you.Do you want to be in a position where someone else decides whether you should be paid what is yours? Is the cost of being networked worth the benefits.

    The fastest way to start earning is to approach small DA brokers/IFAs. They may take you on as a n RI, which is not currently a controlled function. An experian report plus a couple of informed phone calls would be sufficient for an experienced IFA to allow you interim authorisation pending written references. This could be done in 24 Hours. It is likely that you would be charged a premium commission/fee split, possibly 70/30 but as an interim measure it could be worth it. You might like it and wish to stay.

    Rather than jumping into another network frying pan apply for direct authorisation, probably using a service provider such as bankhall, simply biz or tenet. Mortgage and insurance brokers (not full IFAs) pay very little and the resources are worth it. All commissions are paid direct to you.

    The network model was broken a long time ago.

    Carpe Diem.

    and good luck

  • InStep Recruitment 30th April 2010 at 1:05 pm

    Our thoughts are with those of you affected by this tragic event and hope that some resolution can be found quickly. However as one door closes another one opens and we are currently recruiting for a nationwide IFA firm. If anyone who hold FPC or equivalent qualifications and is looking to move back into financial advising we would be happy to have an informal chat and see if we can help in any way. If you are interested please call Jan at InStep Recruitment on 0845 2264757.

  • Rob Downham 30th April 2010 at 12:35 pm

    Thanks for the advice chaps. Meeting is now definately going ahead on Tuesday. Suspect we will have about 60 or so there. Anyone (HOC brokers only) else interested in coming down than please let me know asap (make sure we have a big enough room)rob@simplicityfinancial.com

  • Rob Barwell 29th April 2010 at 5:39 pm

    I just heard the news via email, this is bad bad news, look for another network fast old chap.

    I am currently with Intrinsic, they seem to be OK for now.

  • Simon Charles 29th April 2010 at 4:35 pm

    Rob,

    I have just gone through this with Mortgage Times and the news regarding pending payments is not good. Basically, from my experience, unless you want to go through a long drawn out and potentially expensive recovery of the money you may as well just write it off.

    You need to either re authorise yourself directly or find a network that can do it for you. There are a number of seemingly more financially robust networks, check their accounts thoroughly through companies house though as claims made by certain networks are not always matched up. I was approached by HOC 2 years ago and would have joined but for a clause in my MT contract, the premise from HOC at the time was a list as long as your arm of the financial instability of other networks – I made the mistake of not checking HOC properly!!

    I eventually joined Openwork and so far so good. They are still backed by Zurich which has it’s drawbacks however it does provide a little but more security plus the support from them and systems are great. However like any of these networks you can only go on what you’re being told and the information that is to hand.

    Sesame, Lime and Instrinsic also seems to be stonger networks in the current climate, with some of these offering authorisation within 30 days.

    NB If you decide to go Directly Authorised you will likely have to wait up to 3 months to gain authorisation so if you need to trade now I would suggest short term alliances with an existing brokerage who can provide the right compliance management or find a network who can register you quickly under their umbrella.

    Hope this helps.

    Simon

  • Simon Charles 29th April 2010 at 4:35 pm

    Rob,

    I have just gone through this with Mortgage Times and the news regarding pending payments is not good. Basically, from my experience, unless you want to go through a long drawn out and potentially expensive recovery of the money you may as well just write it off.

    You need to either re authorise yourself directly or find a network that can do it for you. There are a number of seemingly more financially robust networks, check their accounts thoroughly through companies house though as claims made by certain networks are not always matched up. I was approached by HOC 2 years ago and would have joined but for a clause in my MT contract, the premise from HOC at the time was a list as long as your arm of the financial instability of other networks – I made the mistake of not checking HOC properly!!

    I eventually joined Openwork and so far so good. They are still backed by Zurich which has it’s drawbacks however it does provide a little but more security plus the support from them and systems are great. However like any of these networks you can only go on what you’re being told and the information that is to hand.

    Sesame, Lime and Instrinsic also seems to be stonger networks in the current climate, with some of these offering authorisation within 30 days.

    NB If you decide to go Directly Authorised you will likely have to wait up to 3 months to gain authorisation so if you need to trade now I would suggest short term alliances with an existing brokerage who can provide the right compliance management or find a network who can register you quickly under their umbrella.

    Hope this helps.

    Simon

  • Simon 29th April 2010 at 3:57 pm

    I can provide a little insight into what lays ahead as I was a member of Network 300 that went bust (in dodgy circumstances) in 2004.

    The FSA will not let you trade unless you are authorised, & that takes time.

    You will be in a long line of creditors, but probably near the back.

    The administrators will charge a fortune sort out a deal that is probably useless for creditors like you.

    The liquidator will also charge a fortune, which will just erode the money that you might eventually get.

    After 5 years & 6 months we have just received a cheque for around 3p in the pound owed to us.

    Companies don’t suddenly run out of money, so in some cases the management have had time to sort themselves out with a nice parachute & soft landing. You unfortunatley will be left on the plane to crash & burn.

    Obviously only my opinion, but then what do I know?

  • Rob Downham 29th April 2010 at 3:22 pm

    Hi,

    It would be great if I could speak to someone who has been through this before so we can learn from what you went through.

    Could you call me asap on 07951 744140

    I would be very grateful.

    Rob Downham

  • James Anderson 29th April 2010 at 3:02 pm

    Best wishes to all HOC ARs. Sounds like things will be better than with Mortgage Times so fingers crossed.

  • Kim Holden 29th April 2010 at 2:57 pm

    Would any ex-Network Data/The Mortgage Times ARs be willing to provide any advice to these unfortunate ARs?

  • Paul 29th April 2010 at 2:34 pm

    Good luck to all those affected. Hopefully by putting heads together you can come up with a solution. Good luck to you all, and I am sure there are brighter times ahead for you.