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IFAs moving to networks to reduce risks

I read with interest the article by Gary Dixon of Compliance Solutions (Money Marketing, April 3).

From a network perspective, the headline promised to challenge the future validity of my business and many others which, in aggregate, support over half the country&#39s IFA population – nothing new there then.

But times are certainly changing. I would agree that PI underwriters decide at will whether a firm can be covered or if they are to be in breach of FSA requirements.

The FSA now has over a dozen consultation and discussion documents in circulation – each with the potential to undermine all but the most diligent IFA business. For some, the future alone is quite unappealing.

But why should alone be better than networked?

In response to these facts of life, established independent networks continue to see increases in membership and business volume for a very simple reason – people do not need to carry the risk that our industry requires they accept.

As long as the network model demonstrates value and mitigates the embedded risk for professional IFAs, then, like any big business, satisfaction reflects service – and “good” networks will continue to thrive.

Knocking the competition to establish a place in the market… just who should be questioning their ethics?

Nick Kelly

Managing director, Interdependence Network and M&E Network

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