Bankhall chief executive Peter Mann has voiced concerns about IFAs being enticed into shared-equity schemes that offer indeterminate amounts at indeterminate points in time.
The support services provider is introducing what it describes as a value-building plan in response to the wave of profit-sharing models springing up in the industry.
He believes many of the deals offered to advisers are poor value. Mann says several groups offer to split extra remuneration agreed with fund managers with their advisers at some future date, subject to a host of conditions. He says they should pass on the full amount up-front.
Mann says: “IFAs’ horizons, from what I hear, are being presented to them as for some indeterminate amount at an indeterminate point in the future, which concerns me as I cannot see any value.
“It is Bankhall’s job to offer services which the members pay for. Part of that service is to help them grow value. Why should I profit from it and take their money away?”
Bankhall’s value plan offers advice on exit and acquisition strategies, technology, customer segmentation and marketing support, which Mann says will increase the value of the adviser’s business.
Bankhall says it will draw on industry expertise, including financial advice from Deloitte and legal assistance from Pinsent Masons, which advisers would be unable to afford themselves.
Workshops will take place throughout 2008, starting with seminars on exit strategies in January.
He says: “Next year will be a pivotal one for IFAs and if you go on this journey with us, one year after you join, your business will be worth more money than it is worth now. It should not be determined by an extraneous force.”
FS3 managing director Mike Godfrey says: “Bankhall is providing good, useful tools to help businesses grow and create more value. That is all I ever look for in a support service firm.”