View more on these topics

Big rise in IFA failures as direct business bites

The number of financial services firms going into administration rose by 50 per cent last year.

IFAs were among the worst hit, according to business consultancy firm Deloitte.

It says the increased regulatory burden and higher admin costs were the main cause, along with increased levels of direct internet and bank sales taking business away from advisers.

Deloitte says the Midlands was the worst-hit region, with a 60 per cent increase in firms going into administration. Only the North-east saw a reduction by 2 per cent.

Reorganisation services partner Lee Manning says: “The increase in failures in financial services could also be a sign of gradual shift away from the typical high-street IFA in favour of big providers, such as banks, and internet buying. Increased compliance costs are a theme which have affected recruitment businesses as well.

“The last year has seen a number of regulatory changes creating an additional audit burden, which may have pushed a number of smaller operators over the edge.”


Nearly half of advisers reject with-profits

Nearly half of advisers have stopped recommending with-profits policies and 25 per cent expect to transfer more than three-quarters of their clients over the next few years.Research by FundsNetwork, which surveyed over 300 advisers, found that although one in three still see a future for well managed with-profits funds, 49 per cent have stopped recommending […]

Law firm Michelmores launches FS practice

Michelmores Solicitors has launched a financial services and markets practice, operating out of the firm’s London and Exeter offices.It will comprise eight lawyers, led by Philip Ryley, the former head of financial services regulation at Bristol-based TLT Solicitors, and is supported by specialist lawyers and London partners – Brian Chadwick, formerly with Ashursts and American […]

Exit, pursued by regulator

The FSA report on mortgage exit fees addresses all the concerns we and many others have raised over the last few years.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm