Over the years I have spoken to many advisers who are either thinking about starting their own firm or reviewing whether their current network relationship still works for them.
Sometimes the motivation is commercial. Sometimes it is about support. And sometimes it is simply a sense that the business has grown and the structure around it no longer quite fits. Whatever the trigger, it usually leads to the same question: is it time to look again at the network model, and if so, how do you decide which partner is right?
Recent industry data suggests something interesting is happening in the intermediary market. The number of firms operating within mortgage networks as ARs continues to rise. There are now more than 9,600 AR firms operating within mortgage networks, representing over 16,000 advisers with mortgage permissions.
On the surface, that might suggest a simple conclusion: advisers increasingly favour the network model. But the reality is more nuanced than that, and it is worth looking more closely at what might be driving these trends.
THE OPERATIONAL PRESSURES ON DIRECTLY AUTHORISED FIRMS
Running a DA firm has never been straightforward, but the regulatory and operational demands on firms have certainly increased in recent years. Compliance requirements have expanded, reporting expectations have grown, and the operational burden associated with running a regulated business has become heavier.
For some advisers, particularly those looking to establish their own firm for the first time, the AR model can therefore appear appealing. The network structure allows advisers to run their own businesses while relying on a Principal to oversee regulatory permissions, compliance frameworks, professional indemnity arrangements and a range of operational infrastructure.
In theory, that should allow advisers to spend more time doing what they trained to do – advising clients – rather than managing the regulatory and administrative side of running a business. However, the increasing popularity of the AR model should not lead anyone to assume that all networks offer the same experience. They absolutely do not.
UNDERSTANDING YOUR PRIORITIES FIRST
Before any adviser starts speaking to networks, there is a more fundamental step which often gets overlooked. You need to be clear about what you actually want from the relationship:
Until advisers are clear on those questions, every network conversation can sound persuasive. Good recruitment teams are very good at explaining what they offer. But that only really matters if it aligns with what the adviser themselves is trying to achieve.
NOT ALL NETWORKS OPERATE IN THE SAME WAY
One of the most important points often overlooked in discussions about networks is that the model itself is not uniform. Networks vary enormously in terms of their scale, culture, technology, support structures, commercial terms and long-term strategy.
Two firms may both operate as ARs, yet have completely different day-to-day experiences depending on the network they sit within.
That means the key decision for firm owners is rarely whether the AR route is right or wrong in principle. The more relevant question is whether a particular network is the right fit for the firm they want to build.
This becomes particularly relevant at a time when more advisers appear to be setting up their own firms rather than remaining employed within larger brokerages. Some of the data around AR growth suggests that while the number of AR firms is increasing, the number of advisers overall has remained broadly stable. In simple terms, that may indicate more advisers branching out to establish their own businesses.
For those advisers, the network effectively becomes the backbone of their business. It influences everything from compliance oversight and operational processes to technology platforms, lender relationships, training and the wider culture they operate within.
ASKING THE RIGHT QUESTIONS
That is why firms considering the AR route – whether they are starting a new business, moving between networks, or transitioning from DA status – should approach the decision carefully.
Commercial terms will always be part of the conversation. Fee structures, income splits and technology costs can vary significantly. But focusing only on percentages rarely tells the full story. It is often more revealing to ask practical questions about how the relationship actually works:
The answer to that last question can be very revealing. Every network has a type of firm that fits well within its structure and others that do not. Understanding that early can save a lot of time and frustration later.
CHOOSING THE RIGHT PARTNER
Ultimately, the rising interest in the AR model reflects a broader shift within the intermediary sector. Many advisers want the independence of running their own business, but they also recognise the value of shared infrastructure, regulatory expertise and operational support.
For some firms, that balance will continue to favour DA and there is support available for that route, including our own DA Club.
For others, the network route – such as that offered by The Right Mortgage – can provide the structure and support needed to build and grow a successful advice firm.
What the data does underline, however, is that more advisers are actively reviewing their options. In a market where networks can differ widely in what they offer, choosing the right partner is not simply about comparing numbers. It starts with understanding your own priorities, and then making sure the network you choose is genuinely set up to support them.
