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A turning point for listed IFAs

Those famously troubled listed IFAs may be about to turn the corner, according to one the most outspoken analysts on the sector Durlacher.

The analyst believes that a combination of improving stockmarkets and cost-cutting measures mark a turning point.

This is great news for almost everyone involved in financial services. The companies&#39 respective managements have struggled recently to convince sceptical but profitable IFAs that their new distribution models could cut the mustard.

If they can, it is great news for shareholders, advisers, providers and perhaps most particularly the public spared the uncertainty of seeing their adviser&#39s firm go under.

Of course, many IFAs, both listed and non-listed, plus networks, support services and franchise organisations, need to do some very serious thinking about how so much money was lost and why they were so exposed to the stockmarket cycle.

Durlacher also says that in many ways the sector remains a disappointment. The groups concerned remain too small to really deliver the sort of power “distributor” companies need to become star stockmarket performers. That is, of course, a market view. The average adviser may be quite content with a mix of players.

But very few IFAs like to see other adviser businesses collapse. The recent public criticisms by some IFAs of particular listed operations reflected genuine concerns about what another high-profile collapse would do the reputation of the entire sector.

Of course, this turn-round reflects the view of one analyst. Some of the firms concerned have yet to post a profit but they are clearly making moves in the right direction. But we will only really know if these businesses can work when they post their first set of results in black ink.


Trade bodies&#39 fears on FSA&#39s reporting rules

Trade bodies fear that new reporting procedures proposed by the FSA will add costs and mean an upheaval in business practices.CP198, published last week, outlines regulatory reporting proposals for financial services firms. In it, the FSA proposes a “streamlined approach to reporting requirements” which would mean that all intermediaries must file reports to the FSA […]

&#39Quitting networks could get IFAs better PI deal&#39

IFAs could be getting a better deal on their professional indemnity insurance by quitting their networks, according to support services providers and brokers.Support services provider Threesixty believes firms which rushed into networks when PI premiums escalated last October could be paying higher premiums now than similar sized companies which remained independent.Trade bodies Sofa and Aifa […]

Clerical Medical issues CGT guide

Clerical Medical has produced a guide to capital gains tax taper relief. It targets IFAs to help them identify and understand the CGT rules for clients selling their business.

Inside edge

Few issues are as emotive as Europe, throwing up images of referendums and, if some people are to be believed, a super-state, with bureaucrats in Brussels taking control.With so much scaremongering and debate over what a European constitution would mean to people&#39s everyday lives, it appears that this is one political hot potato no one […]

Passport - thumbnail

Thinking of expanding overseas?

Whether you’re a small company or an established larger employer, expanding overseas into emerging markets can be an extremely attractive prospect for growing your business. However, with this comes a duty-of-care requirement to any staff based overseas.


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