Network model in need of overhaul according to Paradigm MD

The traditional network model is out of date and in need of a serious overhaul according to Stuart Cresswell, managing director of Paradigm Financial Advisers (PFA).
Cresswell, who joined Paradigm Group to develop PFA in response to growing demand from IFAs for an independent network prepared to put advisers at the heart of the decision making process, believes the model of yesteryear that was built on taking retentions from commission is already proving unsustainable, and that is before the true implications of the RDR have been felt. 
 He describes the challenge of building a profitable business, whilst meeting the required regulatory requirements, as the toughest the network model has ever faced, with only those willing to deliver ‘true value’ to the IFA set to last the distance.
Cresswell believes that now more than ever networks need to work ‘smarter and harder’ to be profitable, with traditional models’ business costs rising and profits being reduced by the burden of legacy issues and outdated systems. 
According to Cresswell in days gone by there was little incentive for networks to help IFA businesses build long term value through fee and trail-based models, something that they now need to urgently embrace at considerable cost.
“RDR changes many things” says Cresswell. “Traditional networks are having to radically alter their business models to reflect the new requirements that IFAs have to meet. For some of the larger legacy networks this is already proving difficult as they begin to come to terms with the full implications of what is around the corner.
“To prosper in a post-RDR world, IFAs need the right kind of support from the right kind of network and any firm that has doubts about whether their existing network is fit for the job need to be considering their options sooner rather than later.”