Network if you must – but you’ll miss out

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Regarding the debate about network vs appointed representatives, networked advisers are not the sort of people who are comfortable running their own company. They have an employee mentality and live in the delusion of running their own company.

Just because you have worked for a life office or been employed does not automatically mean you can run a business.

I ran Norwest Consultants for 25 years. I started as I meant to go on – a directly authorised, non-incorporated, independent sole trader. This was no accident.

I had experience of running a company and certainly did not want people poking their noses into my financial affairs. Nor do I take kindly to being told what to do by those who may have less experience or knowledge. Engaging directly with regulation is part of the job.

Incorporation is an illusion of personal protection. Being unincorporated means that your money can be invested and work for you. In a company, you suffer double taxation. There are no P11D taxes.

You have independence.

Having employed more than 40 staff in my previous career, I knew only too well that much of the problems in business emanated from staff. Taking on advisers increases the risk exponentially, and one has to become a nanny instead of an adviser. The compliance burden rises geometrically if you have additional advisers.

I am not exceptional. I think I have demonstrated that it can be done – and profitably. I made a profit in every single year and met my capital adequacy requirements with ease – and could have met the increased requirements with equal equanimity.

So I say to those who waiver – if you want to be in a network – you may very possibly just be better off employed. To those who are really able to run their own company – what are you waiting for?

Harry Katz

Consultant,

HA7 Consulting,

Stanmore, Middx