Stonebridge defends network model
The network has launched a defence of the viability of suitable network models as industry commentators have suggested the market will contract due to the financial crisis.
But Stonebridge has argues that those with the correct strategies in place won’t necessarily have to compromise.
Richard Adams, managing director of Stonebridge Group, said: “There have been a number of networks making changes to their adviser fees lately and from the outside it looks like they are subsidising their preparations for the Retail Distribution Review by hitting advisers in the pocket.”
And he added: “We’re proud that our charging structure is transparent and has remained unchanged for eight years. Our appointed representatives can plan and budget effectively for the future without having to worry about us moving the goalposts further down the line.”
Adams added: “Aside from the fact that many advisers are having to deal with the effects of reduced volumes on their business they have the introduction of new legislation and processes such as the RDR and the Mortgage Market Review to implement.
“This should be a time when networks provide extra support and advice and not be looking to take advantage of their ARs by hiking fees.”
And he added: “Networks that constantly chop and change may find they need to merge or be subsumed by competitors but those with a competitive and quality-driven model have a solid platform to build on for the foreseeable future.”