View more on these topics

‘No network shield from complaints’

Bankhall says there is no benefit in joining a network because they offer advisers no protection from liabilities arising from complaints against them.

The firm says it is concerned that many advisers believe joining a network protects appointed representatives from regulatory and financial liability in case of complaints.
Marketing director Richard Howells says: “What is the benefit of joining a network if the financial liability is passed back to the individual adviser? People join networks for protection against that liability. The network principal gets a slap on the wrist from the regulator but, in terms of cost, it falls to the individual.”

But both Falcon and Burns-Anderson say networks do add value by mitigating business risk which reduces the likelihood of complaints.

Falcon chief executive Allan Rosengren says: “Of the 15- odd networks out there, some are more hands-on than others. Their role is to add ano- ther layer of protection by risk-managing every piece of business. Although the network is ultimately responsible for the action of its ARs, within a contract, if there is the need for a settlement, it would be settled by the individual, not the network.”

Burns-Anderson head of marketing Adrian Lewis says: “We do have clauses written into individual member contracts and they are ultimately responsible for the advice they give. However, we pride ourselves on the guidance that we give to avoid complaints coming back to our advisers in the first place.”


Crude awakening

A number of supply factors are keeping oil prices high and they could go even higher in the short term

FinanceCube offering web solution for advisers

FinanceCube has introduced an online portfolio management service in the UK that it says will shield advisers’ business from the growing threat of the internet. Former Quay Software head of marketing Philip Calvert has been appointed as sales director to lead the launch, which incorporates a web-based software platform using Microsoft. net technology. The platform […]

Deer prudence

Central banks are not there to give stockmarket traders a free ride and last week’s decision by the Fed to pause its rate-raising programme did little to reassure investors. We should not be surprised. Ben Bernanke’s team are very cognisant of the inflationary pressures that are swirling around the global economy and it would be extremely foolish to ignore their potential impact. However, the same team seem quite politically aware and I wonder if they are more interested in keeping growth going at the expense of inflation. This has meant that the Americans are having to listen to a new term to them – but sadly one more familiar to those of us of a certain age in the UK – stagflation.


News and expert analysis straight to your inbox

Sign up


    Leave a comment