Problems with product providers and the regulator place a much greater burden on IFA businesses than problems with networks.
The results of Money Marketing's 1,000 broker survey in conjunction with H2B shows the biggest issue for network members is cost, with 33 per cent of 394 members saying it is a big problem, 32 per cent a medium problem and 35 per sent saying it is not an issue.
They are fairly satisfied with commission services, research on products and marketing materials. Most of the members, 356, think that compliance support is adequate and the majority do not feel their network has created barriers that would stop them leaving.
But Centre Financial Services adviser Terry Stevens says the reason he decided to leave Sesame-owned network DBS was because he felt the charges were too high for his turnover. He says: “Having just left DBS as it became Sesame, I am surprised by these results. I think that life is made very uncomfortable for those wanting to leave. Commission payment information has been withheld and after a 10-year relationship with the network I felt very let down.”