Half of advisers are failing to carry out satisfactory due diligence on prospective networks they are considering joining, research suggests.
According to research firm Adviser Matrix, just under half of advisers only considered one or two networks before making their move, with the vast majority (82%) running the rule over four or less.
Julian Wells, director of Adviser Matrix, says in his experience advisers are very inquisitive ahead of joining a network but adds this is not reflected in firms' due diligence.
"It is essential for firms considering joining networks to ensure they give themselves the opportunity to make a balanced and sensible decision," he says.
"Our evidence suggests the majority do not. Research showed 82% of advisers who considered joining networks considered four or less networks, with 47% only considering just one or two.
"This means they are jumping straight to what is essentially a shortlist, when they ought to initially consider a considerably larger range of propositions."
Advisers considering joining a network can find out more about the options available to them by clicking here.IFAonline
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