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The Proposition

TEn believes that directly regulated (DR) Brokers, up to or over £2.5m GWP, would be better off in many respects as an AR of TEn. That’s compared to remaining as they are and whether or not they are presently members of a DR network.

This is rather a brazen statement, but at least we have the experience and the arguments to back it up. Or we think we do!

Nevertheless, simply because we believe it and we think we can make a good case, it does not necessarily mean that every Broker/Practice of that approximate size will automatically feel comfortable with the concept of AR status.

For many reasons, the proposition can be quite daunting, not least because there is more than a small element of trust involved.

Conversely, many of the start-up brokers that TEn has fostered as ARs - since 2005 - are just as bemused that so few established Brokers’, of their own size or smaller, have failed to make the switch.

In which regard, it should be born in mind, that lots of our ‘start-ups’ are no longer ‘start-ups’. The majority of them are now aged between 6-12 years old.

Of course, the lack of converts from DR to AR status - arguably two in the first 15 years - is perhaps because, neither TEn nor any of our emulators, has failed to put forward a clear proposition or a vision for the future, along these lines.

Ok, so here goes then!

the basics - turn-ons and turn-offs

A TEn Broker (the Firm) must be a Ltd company or an LLP partnership. Sole Traders cannot be ARs, except as a temporary arrangement.

Rule #1 - the clients of a Broker belong to that Broker - NOBODY ELSE, NOT EVER - unless or until that Broker decides to dispose of them.

TEn is unlikely to buy a Member or a Member’s book of business, except as a transition stage in a longer-term arrangement of Succession or Accession, involving other member Brokers.

Put simply, we do believe it right for a network to compete with its members.

A DR Broker, upon joining TEn, should commit to becoming an AR within 30 months, although they would progressively enjoy some of the benefits of membership, during that period.

All TEn ARs use Acturis as their broking system and so a DR Broker cannot become a full AR, until the transition is made to this platform.

Of course, it is the prospect of changing systems and the timing of that move, particularly if the DR firm is locked-in for years by a software house, that is one of the major stumbling blocks. Hence, the 30 month transition.

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