Moreover, with the advent of the Retail Distribution Review some advisers worry that the only way the network model can survice in a fee-based environment is to become more controlling.

This guide looks at the choice between authorised representative and directly authorised, the advantages and disdvabtages of both options, the process of becoming directly authorised and the different responsibilities and costs.

Answers provided by Gary Kershaw, compliance director at SimplyBiz; Campbell Macpherson, managing director of consultancy Campbell Macpherson & Associates; Steve Young, commercial director at Sense Network; Robert Forbes, partner at Plutus Wealth Management, a former authorised representative firm that gained direct authorisation in 2011.