I’m better off directly authorised: adviser

Damien Clyburn, director of Devon-based IFA Otter Financial, said he “would always steer clear of networks” after his experiences when Honister collapsed, adding: “I expect more networks will fall by the wayside, their business models and the liabilities they carry are just not sustainable.”

The firm was among a total 320 left with an uncertain future when Honister entered into administration in 2012.

He claimed the administration had been a difficult time for the firm, leading to the decision to become directly authorised.

Article continues after advert

He added: “After Honister collapsed, we joined True Potential for a short period to allow us to get back up and running, and to get our clients’ authorisations back.

“Since then, the company has stabilised, and we have appointed an additional adviser to deal with the mortgage side of the business.”

He added that the firm’s outlook was now more positive, with its destiny in its own hands, while he would be “very nervous about joining a network again”.

Steve Laird, director of Belfast-based Carrington Wealth Management, said: “I would agree that becoming directly authorised, as we did last year, means that you can do what’s best for your clients, and that is very powerful.”