IFAs are confident about the future for their businesses but are yet to embrace fees wholeheartedly, according to new research from financial services forum PIMS.
The survey shows that 92 per cent of IFAs expect to grow their businesses in the next two years and 72 per cent expect the number of RIs in their business to increase in the next 12 months. Eighty-four per cent say they would recruit from rival IFA firms to boost RIs.
But most advisers are still reluctant to switch their businesses to fee-only models, with just 10 per cent saying they see fee-only as the way forward. Forty-two per cent say the ideal split is fees for 60 per cent of business and commission for 40 per cent.
The survey shows confidence in the equity markets among IFAs, with 40 per cent anticipating that the FTSE 100 will reach between 4,750 and 5,000 at the end of this year.
Sixty-one per cent of IFAs say they would not consider recommending investment trusts to clients alongside unit trusts and Oeics. Of those who would recommend them, 59 per cent say the class of investment trust would be generalist trusts. Only 18 per cent would now recommend split-capital trusts.
PIMS director Evie Owen says: “Overall, the survey is very upbeat and I am sur- prised by IFAs' enthusiasm and resilience. However, I am also surprised by their reluctance to redress the balance of fees and commission and I would have expected a more significant swing toward fees by now.”