Succession chief executive Simon Chamberlain has attacked “value destroying” networks and says members will find it difficult to sell their business due to liability issues.
Speaking at the IFP annual conference in Newport last week, Chamberlain said being part of a network hampers an adviser firm’s ability to negotiate with companies interested in acquiring the business.
He said: “The fact is Sesame, Openwork, Intrinsic, Positive Solutions, and Tenet own absolutely nothing. These are companies that destroy value. No company is going to buy a business that is networked on liability.
“You have got to be directly regulated if you want to successfully sell your business otherwise you cannot possibly negotiate when people try to buy it.”
Chamberlain then hit out at support service firms. He said: “Even worse are the non-regulated compliance firms like Threesixty. These are non-regulated firms going around telling everyone how to be regulated. It is an absolute joke.”
Speaking to Money Marketing afterwards, Chamberlain said: “Networks just sell advisory firms like they are cattle and there is never a benefit for the people that created value.”
Threesixty says there is no requirement for the company to be regulated by the FSA.
Plan Money director Peter Chadborn says: “Network members need to take the initiative to ensure they are not too wedded to their network, and know when a restricted panel or recommended investment solution is not right for them. If you are led by the nose to rely on the network for everything, you are potentially creating problems for the future.”