What does Openwork restructure mean for advisers?


Openwork has confirmed its appointed representatives can continue to advise on multiple product areas, after admitting its restructure had caused “confusion”.

Last week the network announced it is to divide its distribution business into three specialist units: wealth, mortgage and protection. Each division will be headed by a director.

Openwork marketing director Philip Martin says appointed representatives do not have to choose which of the new divisions to be part of.

He says: “There was some confusion as some members thought we were going to pigeon hole the business into those three areas and they would have to choose. But that is not the case – if ARs are active in all three areas they will continue to get support in all three areas.

“This will not affect members; it is an internal mechanism to make it easier for us as a business to identify which parts of the network are making money and to manage profitability accordingly.”

Martin denies the network is concerned about the profitability of a particular section of the business.

He says: “We expect all three units to be profitable at the outset.”

He also denies Openwork has restructured the business with the aim of selling of one of the divisions.

Martin says: “We are quite a complex business and it makes sense to have specialists running each product area.

“Our members are happy with the proposition so we will not be focusing on propositional changes over the next 12 months.”