Ned Cazalet has provoked an angry reaction from IFAs after claiming that Hargreaves Lansdown is the only IFA firm that makes a decent profit.
Speaking at the Future of Life Assurance conference in London last week, the Cazalet Consulting principal said: “Where are all the profitable IFAs? Hargreaves Lansdown is the only one that makes any money.”
John Joseph Financial Services principal John Joseph has hit back, saying many IFAs are still profitable even if the vast majority would not achieve the 759m flotation valuation of Hargreaves.
He says: “It would be interesting for Ned Cazalet to define the word profitable. If he is talking about the ability to sell off a company for millions and millions of pounds, then probably 99 per cent of IFAs are not profitable. If he is talking about the ability to earn inc-ome by giving good advice to clients, I would say that 99 per cent of IFAs are profitable.”
Cazalet slammed life offices and predicted turmoil, citing 2006 figures from the 13 biggest UK life offices showing total earned premiums were 74.2bn while claims paid were 74.6bn.
He said: “There is something fundamentally rotten going on in this sector and things are getting worse. We have to address it or it will be addressed for us.”