Chris Tanner, managing director of HL Partnership, believes that DA firms are going to have to spend even more time and money on proactive compliance services to keep up with the new style of hands on regulation from the FSA, and have less time to focus on transacting client business.
He said: “The dice are definitely loaded more against smaller DA firms now. With the regulatory burden about to get really heavy, just the cost alone of trying to keep up with a more proactive regulator, makes the AR route particularly attractive for firms.
"Advisers want to spend their time in front of clients and potential clients and good networks provide that environment.
"Not only is there the important regulatory umbrella but also access to ideas, products and services, which allow advisers to widen their offering to clients.”
He added: “Good networks are a real win:win scenario for advisers.
"The recent spate of bad news concerning networks going bust has actually had a very positive outcome.
"Networks have just gone through the ultimate stress test because of the recession.
"The weak and those whose business plan could not adapt to the changing business landscape are extinct.
"Those networks which did adapt are stronger for the test and capable of providing the kind of business development and compliance support that intermediaries are going to need in the years to come if they want to concentrate on doing what they do best – namely writing good quality compliant business in a fertile and supportive environment.”
