Going Directly Authorised

Tory

Evening everyone, I work for one IFA (just me as the admin/paraplanner). Currently working with a network but he's seriously considering going DA. Just wondering if anyone has been through this and has any tips or info that would help us make the easiest transition. I've no experience with this and thought I may as well reach out and see if anyone could suggest anything to help.
Thank you.

richardgough

Having done this in the past and seeing how the regulatory things etc are developing I would have to say that you need some really very strong business case reasons for doing this.
Assuming the network sorts out "minor" things like PI cover and your Gabriel reporting this in itself is probably worth the price of not being DA!! Don't forget capital adequacy.
There is no easy transition. Depending on how your business book is registered you may need to novate this across to the new firm. Will the network sign any novation agreement? (In fact, can you novate a book of business to a new adviser nowadays?)Will provider accept it? (Transact wot for example). This means you will have individually move clients over to the new business and any provider facilitated renewal will need to be re-agreed.
The reality is that the grass is not that much greener on the other side! If dissatisfied with network then perhaps a different network. Being DA does give you freedom but also extra responsibilities which for a small form can be onerous.

Having said that the process is not hugely complicated; a fair amount of paperwork (on line) and I'm not sure what the current time scale is for completion. FCA no doubt have a target turnaround time.

Tory

Thanks Richard, at the end of the day it's my boss's decision, I don't have much say on where he wants his business to go although I can at least raise any concerns I have regarding work load.
He is talking to some other networks and also considering using someone like SmiplyBiz to do the compliance side of things for the DA route. 
Not sure about the novation bit - this is a big concern for him and one of the things he is weighing up.

richallum

Our compliance company is http://www.complianceandtraining.co.uk/ and they have helped several of our adviser clients go direct.  As @Tory said, if you go this way get some expert help.