An IFA asks... "I'm part of a small IFA and worried about my future"

Story

There’s been plenty of discussion over the fate of the small IFA; many worried that increasing regulatory burden, administration costs and PI problems will weigh heavy.

It appears that such fears may have some grounds; in a data bulletin published earlier this month, the FCA found that small IFAs are bearing the brunt of professional indemnity insurance.

It states that firms with up to £100,000 in revenue were paying premiums of up to 4.2% of their regulated revenue. In comparison, firms with over £10 million in revenue were paying just 1.2%.

In a changing sector, many smaller firms could be struggling to keep up with increasingly costly third-party fees, while larger firms often benefit from in-house expertise.

Access to administrative, investment and technical support proves valuable in keeping advisers up-to-date with economic trends and providing investment options – but can be expensive to outsource.

If you're part of a small IFA and worried about increasing pressures, you may wish to consider joining a larger firm who benefit from in-house support and economy of scale.

Working with teams of experts means you will have more time to focus on your clients.

With this in mind, ensure you thoroughly research any firm you are considering joining before you agree to a proposition. Changing firms is a big decision and you must be certain it’s right for you.

If you are interested in finding out more about joining AFH as an employed or self-employed adviser, you can visit our Become an IFA page – or get in touch to have a chat with a member of our Acquisitions team.

IFA News

Find all the latest IFA news, all written by our in-house industry experts.

An IFA asks... "I want to be part of a team"

An IFA asks... "I want to be part of a team"

Story 02/07/18

What are the benefits for financial advisers who are a part of an integrated team? There are a number of reasons why many IFAs are choosing to join larger firms.

Continue Reading
I want to become a financial adviser; what qualifications do I need?

I want to become a financial adviser; what qualifications do I need?

Story 13/06/18

Find out which qualifications you'll need in order to meet the FCA's requirements for providing advice.

Continue Reading
An IFA asks... "Can I keep my client network independent?"

An IFA asks... "Can I keep my client network independent?"

Story 04/06/18

If you’re an adviser looking to change firms, staying independent means you won’t have to compromise the whole of market service you are able to provide your clients.

Continue Reading
More articles

Get in touch

To discover how AFH's unique approach to wealth management can help you build a better future, please contact us.