As an affiliate a smaller network can continue to manage a network of brokers while receiving regulatory support from Genesis.
The Affiliate Network scheme has been designed to target small networks without the financial resources or compliance infrastructure to support appointed representatives (ARs) after ‘Mortgage Day’. Genesis is aiming to provide the networks with compliance, training and administration services enabling them to focus on generating revenue.
John Lee, head of sales and marketing at Genesis, explained that the difficulties facing both mortgage and IFA networks have been highlighted in recent weeks with the demise of Lifeboat and that others are likely to follow. “Networks may have a strong proposition and the loyal support of introducers but without strong financial backing they are likely to struggle to meet the demands of regulation,” he said.
He added: “The Genesis Affiliated Network proposition has been designed to enable networks to build on their strengths while working with Genesis to provide the compliance infrastructure needed to operate in a regulated market.”
Tony Corrigan, managing director of Classic Network Solutions, said: “It’s good marketing by Genesis but they are bringing nothing new to the market. Once these networks begin to go down this route of being swallowed up it weakens the propositions for their members.”
Richard Griffiths, managing director of Network Data, said: “It seems that Genesis are following in our footsteps with this scheme. Imitation is the sincerest form of flattery.”
