Are networks losing their appeal?

That said, there is some debate at present about the number of ARs in the market and how many have turned their backs on networks. While I won’t presume to know the exact numbers and - like I said - these can change depending on who we speak to, I think most people would agree that AR numbers are falling. But why?

The intermediary sector has gone through - and, indeed, is still going through - a period of significant change of late, particularly in relation to regulation. One would assume that at such a time of uncertainty brokers would be turning to their networks for support - why aren’t we seeing this happen?

I think firstly we need to accept that the regulatory developments we’ve seen in the last couple of years have no doubt prompted some brokers to move away from offering advice, choosing instead to  become deauthorised and join a firm as an introducer only. This would obviously have some bearing on the number of ARs registered.

It’s also clear that the regulator, although still perhaps a little unpredictable as far as the authorisation process goes, is generally easier to deal with nowadays, something which may give new brokers the confidence to go it alone.

Whilst networks would, I’m sure, disagree, we have to explore the possibility that some intermediaries don’t believe networks provide value for money and certain policies and procedures that are implemented may cause an AR to consider whether a DA proposition might suit their business model better.

Furthermore, with mortgage clubs and specialist partner firms offering help and support, particularly in areas like second charge which are new territory for many brokers, it’s easier than ever before to be a DA.

It could be of course that networks are focusing their attention on recruiting quality ARs who produce good levels of not just mortgage but also life and GI business, rather than seeking solely to boost their broker numbers.

It’s a confusing picture, and one that is open to speculation but the undisputed fact is the market is clearly changing. More than ever before brokers need to tap into support and expertise - but remember that can be found in a variety of places. Consider your options before making your decision.