Whitechurch survey reveals 20 per cent of IFAs seeking exit route
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Twenty per cent of IFA principals are considering an exit route from the industry in the next five years, according to a survey by Whitechurch Securities.
Whitechurch says if the survey result of around 200 IFAs was extrapolated across the industry it would amount to more than 2,000 owners of firms looking for an exit.
It says the market for IFA companies remains depressed and as such the firm has received a large amount of interest for its retirement solution where it offers to take over client banks of select IFAs leaving the industry and continues to pay up to 80 per cent of their renewal income post retirement.
Whitechurch took over the client bank of the first IFA to sign up to its retirement solution in January and by the end of this year it expects to have agreements in place with a further six IFAs.
Due to the level of demand and potential to increase its client base it expects to appoint advisers based in the North of England and South East of England over the next year.
Managing director Gavin Haynes says he has been taken aback by the amount of advisers who are looking to leave the industry by the time that RDR is introduced in 2012.
He says: “We continue to actively seek IFAs who are looking to leave the industry over the next five years and see this as key to growing the client bank on the advisory side of the business and increasing funds under management on our discretionary management service.
“Our solution is focused towards advisers who have built up a long-standing relationship with their clients and are earning streams of renewal income. In the same way the adviser needs to be confident that we will provide a good level of service to their clients following their retirement.”
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