Institute of Financial Planning chief executive Nick Cann says new major distribution players with venture capital backing look set to emerge in the near future if JS&P Towry Law’s fee-based remuneration structure is successful.
Cann believes City investors are looking closely to see if a genuine fee-based wealth management firm can work on a large scale and if so will look to replicate its template.
He says due to the well publicised failing of many big IFA firms in recent years and strong concern from the FSA about profitability in the sector, many investors have steered clear.
But Cann suggests that this will change if JS&P Towry Law’s structure is successful and leads to new names with City backing or foreign firms entering the market.
The IFP has set out its strategy for 2007 and expects its current membership of 1,500 to grow to around 1,800 by the end of the year.
Cann says chartered fin-ancial planner numbers, which have reached 610, will also continue to increase both through students and current advisers taking the qualification.
He says the IFP is in informal discussions with other universities about the potential to roll out Manchester Metropolitan University’s CFP pathway to a financial services degree to other institutions.
Cann says 2007 will finally see the issue of redefining the IFA tag brought to a head with the FSA’s retail distribution review and he hopes to see the emergence of a range of titles better reflecting the skills and abilities of advisers.
He says: “This should be a defining year for the sector, with the retail distribution review recommending much needed radical changes and hopefully the success of JS&P Towry Law spurring the industry on and producing new entrants.”