When the stakes are high and things go wrong we instinctively look to someone to blame. I do not think that too many of us were totally convinced by the 'mea culpa' statements of the HBOS and RBS ex bosses in front of the Treasury Committee in February but their statements will have been seen by many involved in giving financial advice and support as exonerating their own actions.
We do live in a blame society and over the weeks since Christmas, not surprisingly, I have heard many brokers blaming the government and lenders for the situation they are in. I have heard few blaming their own lack of activity when it was evident that serious market changes were upon them as early as the summer of 2007.
Support
As the recession bites the blame spreads and brokers have now started to look at how they are being supported by their networks, trade associations and software providers. All this negative activity keeps their eye off the ball and helps little in the fight for survival
In this article I will attempt to put into perspective some of the positive things that the brokers friends are doing to help, like the initiatives taken by lead generation companies to help brokers diversify into new markets and the views held by some that such as AMI are working closer with lenders than they are with their fee paying members.
I have often asked myself if the broker industry is getting the support it desperately needs from their networks and trade bodies and I have to say that if the brokers have done their homework and addressed their business needs in the form of business planning then there is every reason to believe that excellent support is out there. It has to be said however that if you do not have a business plan and do not really know what help you want it is not surprising that you consequently have a tendency to blame others for your own failings.
Criticism of AMI
I have heard criticism of AMI by its members who believe that they are aligned too closely with the lenders and do not appear to be working for the benefit of its members. I see little substance in this argument and have to say that such a view may highlight the ignorance that may be out there regarding the purpose of AMI and other support groups. In times of plenty it is easy for everybody to join groups that look to give them kudos or status as the fee is modest but when in difficult times the purse strings are tightened brokers will question their value and if you are ignorant of what the trade body is about there is a tendency to blame them for everything and that often translates into loss of business.
Nick Baxter of Mortgage Promotions had this to say about what AMI is about: "It is often difficult when the product being bought is not something that is a physical thing. AMI falls into this camp and I can, therefore understand why some brokers might perceive that they do not provide value for money. However, this could not be further from the truth. AMI does a sterling job arguing on behalf of members with regulators and government. Anybody who doubts that they get value for money should look at the guides they produce on a multitude of issues. When put into a consultancy context their fees appear to be good value."
Demand more
That is not to say that as members you should not demand more of your trade body or network. I have long been a critic of such organisations in that the likes of AMI, Openwork and Mortgage Promotions do very well in supporting their members but they could do much more. Members (and Lenders!) do not make enough demands of them when it comes to them helping their business growth and client retention programmes. With this in mind the new Adviser Matrix launched by Julian Wells has the potential to put pressure on support organisations and networks to improve their competitive position as comparisons will now be much easier. But remember if you do not have a business plan you will not know what you want and so will not appreciate the benefits.
Testing times
The title of this piece suggests that friendships will be tested in times of adversity and this testing is likely to be seen in that organisations that are 'friends' will inevitably have different opinions as to what is going to happen . In recent weeks AMI and IMLA have disagreed on the market outlook and brokers are questioning whom they should believe. Well you tell me? I have my own views but what I would say is that brokers should form their own opinions based on their knowledge of the markets but more importantly by challenging the different position statements of the different organisations. They each have their own objectives and should be questioned via their websites about the substance of their logic. Having had the debate the broker then forms their own opinion and sides with the organisation that has the most convincing arguments.
So let's put the blame agenda to bed. Brokers need to question further what benefits and support they are getting for their fees or commission from their range of partners and then incorporate that detail into their business plans. We all need as much help as we can get but we must convince ourselves that the help we are getting is that which we need.
In times of adversity we need our friends; friends are allies who enjoy mutual regard. I will leave it to the reader to choose the friends to get you through these adverse times. But remember who it was who made the choice and think about it before apportioning any blame in the future.
