Taylor-Barr agrees the compliance aspect is important but is not the only thing that counts.
He says: "For us, the choice to be part of a network is complex.
"It's about having scale in the market, help with advertising, training, business growth and keeping us compliant, which has been essential with the introduction of consumer duty and the time and resource that would have taken had I had to do it alone."
Running a tight ship
Bawa believes failing to give advisers the support they need will mean many will leave, and ultimately, the network will lose money.
In fact, he identifies profitability as one of the biggest challenges adviser networks are already facing these days.
"Profitability is obviously a big consideration for networks. Margins have come under greater pressure, so the question is how to deal with that," he says.
"Too often the answer seems to be to strip back what they are doing, to cut back on support staff and things like that.
"I’d argue that by investing money in the right places, you can help those advisers do more and be more productive."
Technology plays a big part in this equation, adds Bawa.
"One of the problems many networks have is that their systems are archaic, they are just not up to the job, but there is a reticence over accepting this and building something more appropriate," he says.
"I’d suggest that all networks need to think carefully about where they can put money into their systems and structure in order to make a difference to their members.
"Failing to treat advisers properly, to get to know them and their aspirations, is why so many are disillusioned with the big networks."
But Taylor-Barr says it's not always straightforward to please large groups of advisers when it comes to technology.
He concludes: "IT gets it in the neck from all sides; it's either too complex and so half the advisers don't like it, or it's not sophisticated enough and the other 50 per cent are now unhappy.
"When you are dealing with a few hundred, or even a few thousand, people across a network trying to find a system that everyone is comfortable with is nigh-on impossible.
"Add into that the pace of change in technology and the huge costs of wholesale IT systems changes across any large business, that may mean getting lots of different systems talking to each other, and you're on a hiding to nothing."
carmen.reichman@ft.com
