Having read the article on Kean Seager's new empire-building venture, I would like to offer 10 commandments to him and existing networks to help them achieve their goals.
1: Stop taking an unjustifiable percentage of an IFA's turnover and start charging a fee (and please not both). This will prevent you needing to justify your huge charges by offering various services that are of no interest to most IFAs.
2: Offer a menu of services, some of which will obviously be mandatory (ie, compliance) and let the member IFA choose what is relevant to his or her business and charge accordingly.
3: Do not change the contract once signed by both parties to suit yourselves.
4: Stop putting barriers in the way to try and prevent members easily leaving your network. Rely on good service to keep your customers which after all is what an IFA has to do with his own client bank. In other words, treat your members as customers rather than your salesforce.
5: Help your members to trade profitably rather than find as many ways as possible to hinder an IFA's development.
6: Understand the word independent and stop dictating to your members who they should write business with.
7: Ensure a member's remuneration is paid direct to them (from providers) which will hugely enhance your members' cashflow.
8: Communicate with your members at all times.
9: Treat your members as clients rather than as your salesforce/employees.
10: Take ethical and socially responsible investment seriously and give your members adequate training and support on the subject.
If you can't fulfil these 10 commandments, then dare I suggest you go multi-tied?
The Ethical Partnership,