Networks don't collect enough money from their advisers to maintain sufficient systems and controls, which means they can only go one way - down, according to the chief executive of IFA network 2plan.
2plan was founded in 2006 but did not turn to profitability until 2012 when it posted net profits of £3m on a turnover of £15m. Six years is a long time to wait to enter the black. Perhaps unsurprisingly then, CEO Chris Smallwood has strong opinions about how networks make money. At a typical membership fee of 20% gross margin, 2plan is not cheap but Smallwood reckoned advisers consider it good value. The network provides its advisers with technology and support material, and ensures everyone sticks to the same method of working. It compliance checks around 60%-70% of cases. The...
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