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Adviser
Community
The Independent Resource for the Financial Adviser Community.
Mortgage Times Has Gone
(So what do we do now?)
OTHER TOPICS
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Effects of RDR on Insurance Sales....at the present time, there is more incentive for insurers to “raise the quality of products”.....read more
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The recent cessation of business by Mortgage Times has left many AR’s shell shocked and wondering what to do next. This is a natural human reaction to such a blow, particularly if you have several thousand pounds of pipeline commission that appears to have simply disappeared. It is important however for brokers to get back to writing business as soon as possible, both from the point of view of replacing the missing income, but just as important is the psychological boost getting back in the saddle and starting afresh can provide.
Apathy can be a big problem in this situation, particularly with the collapse coming so close to the Christmas and New Year holidays.
The good news however with the timing is that we are now starting a new year, what better time to make a new start. Talking to a friend who is a life coach recently, she recommended the way forward is to compartmentalise the problem. Your business has problems but everything else in your life is the same as always (that’s not to say perfect), so just try to pick yourself up, take a deep breath and plan your recovery strategy. You might even find that this is the push your business needs to take it to a higher level.
If this particular advice sounds simplistic, that doesn’t mean it’s wrong. Have a think about it and you’ll see that however much there’s a natural tendency to say “it’s easy for him to say that”, nevertheless it has to be done. Nobody sensible would ever say it’s easy, especially me, but it just has to be done so you might as well give it a good try.
All networks are not the same, and working for a master broker is not the same as being an Appointed Representative!
It may be tempting to believe they are at this point in your career, and there will always be larger broking businesses or IFA’s who will tell you that you would be better off joining them. In some cases of course that may well be right, if for example you are on the cusp of retiring or have another business and mortgage broking with associated insurance is a very small part of your income.
For the majority of people however this is certainly not the case and giving away 10 to 20% of their income for the services provided by a network is infinitely preferable to giving 40% to a parent company, as well as the issues around client ownership. Regardless of what you might be told when you are being implored to sign an agreement.
In many cases the bottom line is that the client will receive all documentation in the name of the master broker who put the business through their network or directly to the lender if they are Directly Authorised. The master broker, not you is then responsible for all of the compliance and after sales care for that client, the way that financial services regulation in the UK works, is they have the duty of care. You might well stay in touch with your client while you are working for the broker, but once you leave the responsibility for care of the client is the duty of the master broker.
A network differs however because in the majority of cases, they do not have a public facing business. They are not going to carry on a relationship with your client once you leave the network as they do not have the staff or systems to do this. Your client is your client and if you go they go with you.
