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

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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.

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