Network model has dropped off a cliff since RDR

“If there is a trend towards restricted, the networks will need less resource, although many still have a direct authorisation route. However, if you want to remain independent, the resources that a support group could provide might help.”

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At the time of going to press Sesame Bankhall Group was unable to comment.

Mike O’Brien, group brands director for Tenet, said: “At Tenet, we have witnessed a significantly less than average decline of just 7 per cent, balanced by an increase in productivity per adviser and less customer resistance to fee-charging than expected. We are one of the only networks to support independent advice propositions, with most of our rivals choosing to go solely down the restricted route. There is no denying that since the RDR took effect, the trend has been one of consolidation and reduction in overall adviser numbers. However, the effects have not been as severe as many predicted and overall we are realistically pleased with post-RDR recruitment levels.”

Matt Timmins, joint managing director for SimplyBiz, said: “From January to June, 151 firms and more than 400 individual advisers have decided to join SimplyBiz. The majority have joined directly from networks where they are sick to the back teeth of being told that they are either not commercially viable for the network, that they need to go restricted or some other similar nonsense.”