FAQS - OUR SERVICES

  • What is the minimum fee per month?

    £500 by direct debit from from your account.

  • What are the other fees apart from the monthly membership fee?

    The fees for the network include a large number of fees that we pay for you. These include the following;
    Training fees - included in the fixed network fee
    Visits fee from regional compliance managers - included in the fixed network fee
    File Check fees - included in the fixed network fee
    Professional indemnity insurance – included in the fixed network fee
    Joining fees - included in the fixed network fee
    Software fees - included in the fixed network fee
    FSA related fees - included in the fixed network fee
    *FSCS annual-levy fee – included in the fixed network fee
    FOS fees – included in the fixed network fee
    We do charge for specialist advice which IFAs cannot do themselves, this is on a fee basis and in full consultation and agreement with IFA at the time. This includes work such as Pension transfers, which can be as much as £500 payable once only for a report and analysis of an occupational transfer, although the IFA obviously remains in charge of the commission and is free to invoice the customer as appropriate.

    This does not include any interim levies. Financial will communicate our approach to requests for compensation scheme funding if/when they occur.

    Normally commissions are paid direct to the member IFA. However, when any commission is paid to Financial Ltd (mainly Cofunds) there is a fee of £6 for the administration and onward payment of commission to you.

  • Is there a discount for several Appointed Reps under one umbrella IFA company?

    The fee is as low as possible for each RI. The fee is based on value of anticipated new business written each year, with the basic minimum of £500 per month. This reflects our supervision, PI and administration cost. We have made some minor discounts for larger AR firms with more RIs under the same umbrella but the vast majority of our members pay exactly as per the scale of charges. Compare that to what you are paying today.

  • What is the minimum annual commission per registered individual?

    Zero. If you do zero you will be loved by compliance! The less you do the lower the risk you represent and the less work that we have to do. Pressure to deliver results has been catastrophic for our industry and we are keen to stand up for those who do very little new business. In practice these IFAs present us with fewer file checks, lower PI and FSA/FSCS Costs, and less risk. There will be no pressure on you to deliver results. The key matter that concerns us is compliance.

    That said, giving advice for a nil fee does not represent a nil risk. In fact our own statistics show that this "goodwill" area is the most contentious of areas because a nil fee is usually charged to family and friends and very often they turn against you if the work was not done well enough ("…and I was only doing them a favour"!)

  • Is there a capital adequacy requirement imposed on me by the Network?

    No. However, your firm needs to be financially sound in order to adhere to fit and proper rules and we do check that. There has historically been a link between debt and malpractice in financial services, and we are aware of that risk.

  • What is the financial-capital position of the network?

    The Network takes corporate governance very seriously and publishes as much information as possible. In particular see the Pillar 3 statement of capital in the accounts section. Our stated aim is to clear the FSA capital adequacy hurdles by at least 200%. In financial services cashflow is not the king; that crown belongs to FSA capital adequacy and we respect that by staying comfortably above that 200% position. No other networks publish this level or quantity of information about themselves. We are well capitalized and are in this for the long term. In particular IFAs should take comfort from the private ownership.

  • How does capital adequacy work in practice for your hybrid-network IFAs?

    There is a tremendous advantage in being a member of our Hybrid-Network and this aspect of network membership is much under-rated. The trials and tribulations endured by the directly authorised advisers are legion – they will have to account to the FSA for capital adequacy from 2013 on a quarterly expenditure based test basis. Not only is this a complex calculation for them but also there is the matter of the accounting treatment of "goodwill." The goodwill asset uniquely does not count as an asset for FSA directly authorised firms (compared with any other industry). The "goodwill" may even be trail commission of, say, a guaranteed £10k per week, but that will count for nought when delivering accounts to the FSA's Prudential department for capital adequacy checking. This aspect alone makes the purchase of other IFA practices a very difficult matter for small directly authorised practices and has led many firms to join our network. By joining they benefit from the release of capital from their balance sheets.

  • How long does it take to become a member of the Network?

    We would say 4-6 weeks to be realistic. Time delays often come in the first week when obtaining references, so you need to watch out for that. Since the implementation of the FSA's "ONA" system for online applications in 2010 some "squeaky clean" applications sail through faster than before but some applications with minor issues have taken much longer to be cleared by the FSA.

  • Can I talk to existing members before I join?

    You will find a list of ARs on our IFA Map , or if you are really determined on the FSA website.

  • How many times a year do you come and see me?

    Once a year is the usual cycle for the Regional Compliance Manager (RCM) to visit you, depending on the profile of your business. You may want to talk with your RCM before joining; this can be arranged and for bigger AR firms it is recommended.

  • Who gets the initial and renewal commission from business written before joining the Network?

    It all goes to you the IFA, in full without deduction. This takes place via a letter of acceptance signed by us which normally directs it to a private bank account for sole traders. We allow this concession on the basis that we check business records and bank statements to ensure they correlate.

  • How will you position yourself post RDR?

    We are 100% behind keeping the ‘Independent’ in IFA. Recent debacles such as Barclays Bank's failings when selling the Norwich Union funds have shown that often head offices are no better at research into products than individual IFAs! Furthermore the risk is not so much in the product itself, but rather more in the application of the product to the individual. If the product fails and the wrong customer is left holding the product – a low risk customer with a high risk fund – then it is likely that the complaint will go against you. So we prefer to leave the power in the hands of those best placed to establish what is the best for their customer.

  • Do you help IFAs with research?

    We publish research regularly into markets, areas, products and services and this forms part of the benefits of joining us. We also run seminars jointly with selected providers who have something interesting to say. However as we are not a prescriptive network we don't complete the research for you.

  • Do you have black lists of IFA-eating products to help us avoid them?

    We actively look and investigate products which we think are not in the interests of clients and support our IFAs in making informed decisions on what products they use and to whom they recommend them. We recommend technical support in more complex cases.

  • Where do you stand on Occupational Pension Transfers?

    We recommend a phone call to our experienced panel of experts in Technical support. We have close to 100 years of industry experience in that department!

  • Is there a panel members have to stick to?

    No. We are committed to independence. You are an experienced adviser and should source and justify your own recommendations.

  • Is there any backup for unusual products?

    Yes. There is a highly experienced compliance and research team with the knowledge to help you through more unusual cases.

  • Does the Network provide Technical Support and services?

    We can provide pension transfer and other specialist services if required. You will retain the client and "own" the advice the client and the commission. Once again, talk to technical support who work closely with the compliance team. The technical support team includes a wide breath of knowledge and experience to assist IFAs in all the compliance issues they have.

  • Does the Network provide all the commission tracking conciliation and credit control facilities?

    No. Commissions are paid direct to the member IFA so you control the process. We want nothing, repeat nothing, to do with your commission. In fact our proposition anticipates the move towards fees by the IFA industry before and after RDR.

    However we have found that some providers do pay us (mainly Cofunds). In this situation there is a fee of £6 for the administration and onward payment of commission to you.

  • Does PI insurance cover have to be paid by the member?

    PI insurance forms part of your fixed monthly fee.

  • Is the PI excess charged to the member?

    We have FSA compliant cover which will cover you as a member of our Network. We have a risk based approach where you will be asked to pay for the FSA Compliant excess (£5,000) on any upheld claim. Following an upheld complaint, an individual adviser's excess will increased to £10,000. If after three years, there have been no further upheld complaints, the excess will be returned back to £5,000.

  • Who is your PI policy with?

    The policy is normally brokered through Lloyds of London and different underwriters usually take differing layers of risk. The policy is compliant with FSA rules.

  • Can the member design and use their own stationery?

    Yes subject to compliance check before use and annual revalidation.

  • Does the Network help with marketing and leads?

    As a general rule no. But we do put your website link on our website and ours is one of the most visited sites in the UK – just Google 'financial' and we come right up! So there is some credit for you but this is not the same thing as giving you leads. However recently there have been a number of IFAs who are leaving the industry and keen to share their customers with local IFAs who are members of the same network, and we do buddy up advisers coming and going with some success.

  • Does the Network have special terms with the providers?

    Yes. Normal network special terms have been negotiated. You will benefit from the best commission rates where applicable, particularly on life policies.

  • How often do I have to attend a Network meeting?

    You control your own CPD and T&C regime in consultation with your Regional Compliance Manager. We do run seminars around the country for members to attend if they wish. However with the changes of RDR and increased emphasis on training we ask members to attend at least one of the two bi-annual seminars a year. Meetings that were held in 2011 had ten venues around the UK, so in most cases this does not present much travelling.

  • Can the member do their own local advertising?

    Yes subject to compliance check.

  • Do all proposals have to go via the Network?

    No. You deal direct with your existing providers and send proposal forms to them direct. We compliance check your work.

  • Does the Network require any specific software or hardware?

    No. Excel and Word are almost essential however there are free downloadable alternatives that can be used. Ask us if you need any help. Since this is on our website we assume you have already got access to the internet!

  • Does the Network provide a locum for me at no cost?

    The Network will act as the default locum for you but if you want to build up a local arrangement then you can do so. Just let us know the details of the person you have selected.

  • How often do you pay commission?

    We don't. The providers pay you direct. If we are paid by a provider for some specific reason it is paid to you immediately with a fee of £6 per transaction.

  • What costs are involved in leaving the Network?

    Just the three months fixed fees during the notice period.

  • Who is responsible for run off PI costs?

    The Network is responsible for business written while you are or were a member of the Network and we do not force members to take out their own separate run off cover after they have left. If you want to stay covered on our policy after you have left, then we do ask you to pay a contribution towards the cost which starts at £45 per month.

  • If I leave can I take my clients with me?

    Yes. Trust me, we don't want your clients.

  • My current company has told me that I would need to have run-off professional indemnity insurance cover for my past business. Do you offer this?

    We can assist you with run off cover, but as a general rule we think it is expensive, limited, and if you were part of a network, not necessary.