Think twice: Why joining a network could dearly cost advisers

As the dust of the Retail Distribution Review settles and the watchdog continues to clamp down, advisers are increasingly questioning whether a network really offers the security they once thought. I recently spoke to an adviser who told me that as a result of Arch Cru exposure, his network debited his account by about £250,000 in respect of professional indemnity insurance (PII) excesses – a figure he cannot afford to pay. Unfortunately, his network contract means he is personally liable. Had he been directly authorised – rather an authorised representative – it is extremely likely t...