Restricted adviser network Openwork has put expansion plans on hold shortly after reporting its first ever profitable year, and will instead focus on the quality of its operation.
The Retail Distribution Review (RDR) has contributed to the network's decision to shift its strategic direction towards building a quality network rather than "focus on the numbers", proposition and marketing director Philip Martin has said.
"It's about quality, not numbers, and about what we can deliver to our advisers that helps them make it easier and safer to do business," Martin said.
He added: "RDR was a vital catalyst, without it there wouldn't have been the impetus we had to change our business."
RDR's drive towards increased professionalism in the industry coupled with a reduction in adviser numbers have led Openwork to focus inward.
Over the last year the business invested heavily in modernising its systems, introducing new technology in the pensions and investment fields. Further investment is planned in mortgage and protection over the coming six to nine months, which will culminate in a total cost over five years of around £15m.
Martin admitted the network will "always want to be scaled" but its selection process for new acquisitions will be fiercer. "We are interested in taking on the right business for the right reasons."
The days when firms were enticed to enter a network cheaply and then left when they got a better offer are over, Martin said, adding that instead it's all about loyalty now.
"Our shift was about recognising how we operated, how we thought the financial advice space was changing and how it affected out business model. It was about recognising that the old network model has gone where people just bought in and then moved on when they got a better offer.
"Now it's about making our proposition more compelling and them more loyal."
Openwork is a multi-tie mortgage and financial advice network that has more than 2,000 financial advisers.
The business made an unaudited profit of £600,000 in 2012, overturning a £13.3m loss in 2011. The year marked the first profitable year for the company since its launch in 2005.
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