Transparency is one of the financial industry’s favourite buzz-words. Every company wishes to proclaim it works in a clear way to maximise the appearance of working for the client. Clear-as-mud documents are of no help to anyone, least of all clients with a tenuous grasp at best on the way the financial sector operates.
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Yet, even those in the sector can become befuddled sometimes. This is apparent when one looks to networks’ pricing structures, which are not openly published and can leave brokers in the dark. Most networks work on the basis of either charging a flat fee or a percentage of the turnover or payment per application, while another trend is the upfront payment enticing brokers to join.
Brokers must be careful when considering networks to understand what is best for them and take the time to read the small print. Being blinded by stats on turnover will not help a broker’s business if the basic proc fees are not up to scratch.
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Likewise, networks must endeavour to look at their pricing structure from a broker’s point of view. Complex sub-clauses that cannot be understood without in-depth discussion will merely hinder a network rather than help it grow. With all the talk of consolidation, a network should look at its own practises and question why it may not be getting the appointed representative numbers it wants
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