Four 11% years needed to make up losses for IFAs
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It will take IFAs four years with 11 per cent annual growth in business to make up for the losses of 2008, according to Ascentric head of sales Shaun Sandiford.
He says the dramatic drop in the stockmarkets last year, which saw the FTSE 100 plunge by 31 per cent, plus its 16 per cent decline so far this year, means that advisers will need around four years of solid growth to get back on par.
He says: "In order for IFAs to catch up, they will need to make 11 per cent for four consecutive years to make up the losses of last year."
Sandiford says he recognises there could be a 40 per cent surge in the FTSE this year, helping IFAs to recoup losses, but believes this is highly unlikely.
Church Hill Finance director Anthony Badaloo says: "I do not think anyone can be so precise about the recovery because you have got different types of IFAs. The bigger IFAs with expensive overheads will obviously suffer more than the smaller IFAs with different business models."
